British Columbia's recently announced natural gas and liquefied natural gas strategies represent an important evolution in our government's energy and economic priorities. Since the announcement, there has been much discussion about opportunities for the export market. At FortisBC, we've turned our attention to opportunities for the domestic market. Specifically, the natural gas strategy supports the increased use of natural gas as a transportation fuel and its continued use in energy-efficient buildings and industrial processes. The government also outlined the further development of biomethane as another energy option for consumers. Each of these initiatives will expand customers' energy options, while helping reduce energy costs and greenhouse gas emissions.

   The government's shift is timely and reflects the uncertainty in the global economy and changes in the energy industry since the B.C. Energy Plan was announced in 2007. Today, natural gas accounts for approximately 22 per cent of the total energy delivered in B.C., roughly the same as electricity. We need to take full advantage of newly developed shale resources to maintain relatively low energy costs for British Columbians. At the same time, we must work to better meet our environmental objectives. This reflects the wishes of our customers. At FortisBC, we are addressing these challenges by bringing new energy options to the market, balancing economic and environmental priorities.

   As set out in the strategy, expanding the use of natural gas for return-to-base fleet vehicles in our transportation sector makes sense. By using natural gas instead of diesel or gasoline, a local business can save 25-to-40 per cent on fuel costs and see a 20-to-30 per cent reduction of GHG emissions. The transportation sector is the leading contributor to our province's GHG emissions, nearly 40 per cent, and is an area where we can make significant reductions.

   FortisBC has been working with B.C.'s natural gas vehicle industry to advance the required re-fuelling infrastructure for the heavy-duty market. Once that base infrastructure is established, the foundation may be in place to expand use more broadly. Early adopters include Waste Management, one of North America's largest waste hauling companies, which now operates a natural gas fleet in the Lower Mainland, their first in Canada. Vedder Transport, one of B.C.'s largest independently owned trucking companies, has replaced a fleet of 50 trucks, now powered by liquefied natural gas. Developing new domestic markets for B.C. natural gas means we will better utilize our existing pipeline network. This will help ensure long-term competitive delivery rates for our natural gas customers.

   The natural gas strategy also high-lighted benefits from the efficient use of natural gas in B.C. buildings and industrial processes. Natural gas is now being used more efficiently than ever, and complements new and emerging energy forms. Our energy efficiency and conservation team is collaborating with the provincial government, other utilities and industry associations on policies and programs that will help our customers save dollars and lower their energy use.

   We are developing ways to integrate natural gas with emerging energy forms, like our new biomethane program for residential and commercial gas customers. The program is the first of its kind in North America, and provides our customers with the opportunity to pay a small premium to purchase a blend of renewable natural gas. Working with our partners, we are capturing raw methane from local landfills and agricultural waste, upgrading and injecting it into our natural gas distribution system.

   Natural gas is a key competitive advantage for B.C.'s economy and a global climate change solution. The natural gas strategy will enable us to offer new energy options that deliver economic and environmental benefits to energy consumers.

By John Walker, president and CEO of FortisBC, which distributes natural gas and electricity.

Vancouver Sun

February 15, 2012