The government of British Columbia has given the green light for the continuation of a new pipeline project aimed at supplying natural gas to a proposed floating liquefied natural gas export terminal off the North Coast of British Columbia. The project was deemed to have “substantially started” by a deadline set last year.
The Prince Rupert Gas Transmission project is a collaboration between the Nisga’a Nation and Western LNG, a Texas-based company. Initially planned to stretch approximately 900 kilometers from Hudson’s Hope to Lelu Island near Prince Rupert, the pipeline’s revised route now starts in Chetwynd to avoid disrupting caribou habitat. The terminus point has also been proposed to be at Wil Milit on Pearse Island, closer to the Ksi Lisims LNG export facility.
The Ksi Lisims project, supported by the Nisga’a Nation and Western LNG, envisions a floating production facility with the capacity to produce 12 million tonnes of liquefied natural gas annually. The construction of the associated pipeline reflects a growing interest in LNG export terminals as a means to diversify Canada’s energy sector, reducing dependence on the United States.
Despite approval, the project faces opposition from various groups, including the Gitanyow Hereditary Chiefs, who raise concerns about potential risks to salmon habitat and the acceleration of climate change.
Originally approved in 2014 under TC Energy Corp’s ownership, the pipeline project was acquired by the Nisga’a Nation and Western LNG in 2024 for the revised Ksi Lisims facility proposal. To avoid permit expiration and a restart of the entire proposal, the partners had to demonstrate substantial progress in pipeline construction by the end of November 2024. The application submitted to B.C.’s Environmental Assessment Office in November 2024 has been reviewed, confirming sufficient work has been undertaken on the project, obviating the need for new approvals.
The construction process encountered opposition from the Gitanyow hereditary chiefs, who staged protests, including blockades, citing environmental concerns. The project’s backers, including Western LNG with significant support from Blackstone Inc., have faced criticism for their perceived disregard for environmental considerations.
While the B.C. Green Party criticized the government’s decision as “deeply irresponsible,” the president of the Nisga’a Lisims government views the project as an opportunity for Indigenous communities to lead pipeline development, emphasizing environmental protection and prosperity for British Columbia’s nations.
The environmental impact and economic viability of LNG projects have sparked debates, with concerns raised about the extraction methods and market uncertainties. Despite these challenges, proponents of the Ksi Lisims project are optimistic about its potential approval in 2025, with a projected operational timeline by 2029.