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This news release was posted more than two years ago. View our latest news releases here.

New eDrive electricity rate for LNG facilities

The Government of British Columbia and BC Hydro have announced a new eDrive electricity rate, which will be provided to LNG proponents that connect to the BC Hydro integrated grid and use clean, renewable electricity for the liquefaction process (using compressors to chill and liquefy natural gas) at their facilities.

The new eDrive rate will be available only to proponents once they have announced their final decision to proceed with their LNG projects and use electricity to power their liquefaction process. LNG proponents who use grid power for liquefaction will also receive the new eDrive rate, which is the same rate as the standard industrial electricity rate, for their ancillary power needs.

This announcement creates an incentive for LNG developers to use electricity instead of natural gas for their compression needs, and supports actions under the Province's Climate Leadership Plan to encourage electrification, reduce emissions, and enable the development of a new, low-carbon economy.

Using electricity instead of natural gas to power LNG facilities will limit greenhouse gas emissions, helping the Province achieve its reduction targets.

LNG customers also will be required to contribute the full cost of connecting to the BC Hydro system and transmission upgrades required to serve their facilities, as set out in electricity supply and load interconnection agreements with BC Hydro.

As changes are made to this rate, which is the same rate as the standard industrial electricity rate, LNG proponents will be subject to those changes, just like all other industrial customers – under the 10-Year Rates Plan, rate increases are capped at 4% this year, 3.5% next year and 3% the year after – and then forecast to increase by 2.6% per year for the final five years of the plan.

Suntanu Dalal
Media Relations
Ministry of Energy and Mines
p. 250 952 0628

BC Hydro Media Relations
p. 604 928 6468