Why Small LNG Hubs Are Gaining Big Momentum

New projects in British Columbia and Texas mark a shift toward flexible, small-scale LNG for marine fuel and peak demand

28 Oct 2025

North America’s LNG sector is moving toward modular projects as developers seek faster, more flexible ways to support regional energy reliability and marine fuel demand. New approvals in Canada and the US point to rising interest in small-scale storage and bunkering facilities rather than large export terminals.

In British Columbia, the Tilbury LNG site near Vancouver has become central to this shift. On October 27 2025, the British Columbia Utilities Commission approved FortisBC’s plan to build a larger storage tank at the Delta facility. The project will replace an older unit and expand capacity to support gas deliveries during peak winter demand while enabling further growth in marine bunkering on the Fraser River.

Tilbury has long provided peak-shaving services for local customers. Its planned expansion would extend this role by supplying LNG as a lower-emission marine fuel for ships serving the Pacific coast. Earlier project documents outlined a phased path from several hundred thousand tonnes of annual capacity toward several million tonnes as additional modules are added, positioning Tilbury as a regional energy hub rather than a traditional export venture.

A similar pattern is emerging on the Gulf Coast. In May 2025, Galveston LNG Bunker Port received final permits from the US Army Corps of Engineers and the Coast Guard, allowing construction of the first dedicated LNG bunkering facility on the Texas Gulf Coast. Located on the Texas City Ship Channel, the project will begin with a capacity of about 360,000 gallons per day, with scope to double output within a year of operations. Commercial deliveries are targeted for late 2027 to serve the expanding fleet of LNG-fuelled vessels calling at Houston and Galveston.

The two projects highlight how small-scale LNG is being used to address practical challenges in North American energy markets. In western Canada, added storage is expected to strengthen system resilience and provide a foundation for cleaner marine fuels. On the Gulf Coast, a purpose-built bunkering hub offers shipowners a compliant alternative as environmental standards tighten.

Analysts note that these investments align with global growth in small-scale LNG, supported by industrial users and transport operators seeking cleaner fuels without relying on new pipeline networks. North America is viewed as well placed to capture a significant share of this expansion, owing to abundant gas supply and established logistics.

Regulatory complexity, methane-emission concerns and community engagement remain key issues, while cost control is critical for keeping smaller facilities competitive. Even so, recent approvals suggest modular LNG infrastructure is becoming a durable feature of the region’s energy system.