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$10B Ksi Lisims LNG Project in B.C. Receives Environmental Approval Amidst Indigenous and Environmental Concerns.

Published on: 17 September 2025

$10B Ksi Lisims LNG Project in B.C. Receives Environmental Approval Amidst Indigenous and Environmental Concerns.

Ksi Lisims LNG Project Receives Environmental Approval Amidst Controversy

The $10 billion Ksi Lisims LNG project, a proposed liquefied natural gas (LNG) terminal in northwest British Columbia, has received a provincial environmental assessment certificate, marking a significant step forward despite opposition from environmental groups and some First Nations.

Project Details and Approval Process

Located approximately 80 kilometers north of Prince Rupert, the Ksi Lisims LNG project is a collaboration between the Nisga'a Nation and Western LNG. The project aims to establish a floating production facility with the capacity to produce 12 million tonnes of LNG annually. The province states that the environmental assessment certificate was granted following a nearly four-year review by the Environmental Assessment Office (EAO), including legally enforceable conditions designed to mitigate the project's impact.

  • Projected cost: Upwards of $10 billion
  • Expected start of operations: Late 2028 or 2029
  • Expected average construction workers: Approximately 450, with a peak of 800
  • Expected permanent workforce: Between 150 and 250 workers for at least 30 years

Concerns and Opposition

The project has faced considerable opposition, primarily due to concerns about its potential environmental consequences. Critics, including the Gitanyow hereditary chiefs, argue that the project poses a risk to crucial salmon habitat. A major concern is the 750km Prince Rupert Gas Transmission pipeline required to transport natural gas from northeast B.C to Pearse Island for LNG production.

Environmentalists have also voiced concerns over the involvement of Blackstone Inc., a major American asset manager, and question the long-term competitiveness of Canadian LNG in the global market, with the David Suzuki Foundation suggesting it could become a "rusting hulk on the coast".

"It's hard to believe that we're moving ahead in B.C. with climate-destroying LNG projects in the midst of a climate crisis," - Tara Marsden, sustainability director for the Gitanyow hereditary chiefs

Mitigation and Consultation Efforts

The provincial government insists that the environmental assessment process incorporates plans to mitigate impacts on wildlife habitat and has established reporting mechanisms for First Nations and mariners to voice their concerns. The EAO consulted with 10 area First Nations. While some, such as the Kitselas First Nation and the Gitga'at First Nation, supported the certificate's issuance, others, including the Metlakatla First Nation and Kitsumkalum First Nation, withheld their consent.

Environment Minister Tamara Davidson and Energy Minister Adrian Dix acknowledge that not all concerns from area First Nations have been resolved despite significant efforts and are committed to continued consultation. They also acknowledged that the project would contribute to "cumulative effects on ecosystems and communities in the region."

Federal Approval and Conditions

The federal government, led by Minister of Environment and Climate Change Julie Dabrusin, has also greenlit the project following a substituted impact assessment conducted by the Government of British Columbia. This decision includes legally binding conditions to mitigate adverse effects on fish and birds, safeguard Indigenous health and socio-economic conditions, and protect cultural heritage and traditional land-use. The proponent must also accommodate for potential impacts on the rights of Indigenous Peoples.

The Ksi Lisims LNG project is expected to connect to the BC Hydro power grid, utilize the Prince Rupert Gas Transmission pipeline, and construct a floating production unit in South Korea. It aims to commence exports to Asia by 2029.

Economic and Reconciliation Considerations

The federal government’s decision reflects a commitment to sustainable economic growth and Indigenous reconciliation. The government believes that the project will contribute to sustainability, reconciliation, and Indigenous economic self-determination, supporting diversification of Canada's trade and positive economic outcomes for regional communities.

Project Feature Detail
Proponents Nisga'a Nation, Rockies LNG Limited Partnership, Western LNG LLC
Production Capacity 12 million tonnes of LNG per year
Location Wil Milit, near Gingolx, BC (80 km north of Prince Rupert)
Expected Start Date 2029

The B.C. government has emphasized that the project aligns with its goals of supporting economic development while addressing environmental concerns and fostering relationships with First Nations.

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