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Canada's Federal Government and British Columbia provincial authorities have granted an environmental assessment certificate to the Ksi Lisims LNG project, a proposed liquefied natural gas export terminal planned for construction on the north-west Pacific coast of Canada, near Gingolx, BC. The environmental assessment certificate clears a major regulatory hurdle for the project and paves the way for a potential final investment decision, which is expected by the end of the year.
The Ksi Lisims LNG terminal has an anticipated capacity of 12 million tonnes per annum and could become Canada's second-largest LNG export facility following LNG Canada, which commenced operations this year.
Partnership Structure and Development
The project is being co-developed through a partnership among Western LNG, Rockies LNG, and the Nisga'a First Nation, which owns the land on which the terminal is to be built. The facility is located on treaty land owned in fee simple by the Nisga'a Nation. Davis Thames, Western LNG founder, president, and CEO, described the approval as “a significant achievement for Ksi Lisims LNG and a testament to the strength of our innovative development model.”
Thames added that it “shows what is possible when a strong partnership between co-developers is matched with one of the most environmentally advanced designs in the world.” Construction of the project is expected to begin this year, if the final investment decision is favorable. The projected operational date is 2029.
Environmental Design and Energy Supply
The LNG terminal is designed to use renewable hydroelectricity and will be built on floating platforms in a remote location to reduce carbon emissions. However, B.C. Hydro's ability to supply the necessary renewable energy by the projected operational date in 2029 remains uncertain. Charlotte Raggett, Rockies LNG president, characterized the project as “a game-changing opportunity for Canada” that “advances our shared goals of becoming an energy superpower, building economic resilience and keeping our industry strong for the long term.”
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Commercial Agreements and Infrastructure
The project has already secured significant commercial commitments, with Shell and TotalEnergies having committed to 20-year purchase agreements with the project. The location on the Pacific coast is said to offer logistical advantages, such as reduced shipping times to Asian markets compared to those on the US Gulf Coast. To supply natural gas to the terminal, the Prince Rupert Gas Transmission pipeline, a 900 km infrastructure project, is underway to transport natural gas from north-east BC to the Ksi Lisims site.
Indigenous Leadership and Economic Impact
Eva Clayton, Nisg̱a'a Lisims Government president, emphasized the significance of the project for indigenous economic development. “This milestone reflects the strength of indigenous leadership and our commitment to sustainable economic self-determination,” Clayton stated. Clayton described the project as “a transformational opportunity for all participating BC nations” that “will be developed in line with our Nation's high environmental standards.”
She characterized the development as an example of reconciliation, describing it as “a modern Treaty Nation once on the sidelines of our economy, now leading a project that will help write the next chapter of a stronger, more resilient Canada.” The approval represents a major step forward for the project, with stakeholders now focused on securing the final investment decision and moving toward construction of what would be a significant addition to Canada's LNG export capacity.
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