Ksi Lisims LNG project advances to permitting stage

Key Takeaways:

• Ottawa has cleared the Ksi Lisims LNG project to proceed to the permitting stage, marking the first approval under the amended Impact Assessment Act and the first to incorporate the Nisga’a Final Agreement.
• Backed by the Nisga’a Nation, Rockies LNG and Western LNG, the $10-billion terminal near the Nass River is expected to create jobs, generate revenues for Indigenous and regional communities, and expand Canada’s LNG exports to Asia.
• While the review found limited but significant adverse effects, the project must meet strict, legally binding conditions to mitigate impacts on fish, birds, Indigenous health, cultural heritage and marine ecosystems.

The Whole Story:

The federal government has given the green light for the Ksi Lisims LNG project in northern British Columbia to advance to the permitting stage, following a joint environmental review led by the province and the Nisga’a Nation. Environment and Climate Change Minister Julie Dabrusin announced Monday that while the project is expected to have some adverse effects in areas of federal jurisdiction — including on fish, birds and Indigenous rights — those impacts are considered limited with mitigation measures and justified in the public interest.

The $10-billion proposal, located near the Nass River estuary on Nisga’a territory, calls for the construction of a natural gas liquefaction and marine terminal facility. Backed by the Nisga’a Nation, Rockies LNG Limited Partnership and Western LNG LLC, the development would process natural gas delivered by pipeline from northeastern B.C. and ship it to markets in Asia. Proponents say the project could generate thousands of construction jobs and significant revenues for Indigenous and regional communities, while helping diversify Canada’s trade.

“There’s never been a more critical time to diversify our economy and reduce reliance on the U.S., and B.C. is leading the way in Canada, with clean electricity, skilled workers and strong partnerships with First Nations,” said B.C. Premier David Eby. “I want to congratulate Nisga’a Nation and their partners on this important project milestone and the opportunity it represents for the Nisga’a people and local communities.”

Under the terms of the minister’s decision, the companies must comply with binding conditions to reduce environmental damage, safeguard Indigenous health and cultural heritage, and establish monitoring programs to ensure the effectiveness of mitigation measures. Ottawa says the project sets a precedent as the first to be approved under the amended federal Impact Assessment Act, and the first to incorporate requirements from the Nisga’a Final Agreement, B.C.’s first modern treaty.

The decision comes as Canada looks to expand its liquefied natural gas sector to strengthen its position as a reliable global energy supplier. But the project has also drawn scrutiny, with Indigenous groups raising concerns about the broader impacts of increased marine traffic along B.C.’s north coast. Federal officials say those issues will continue to be addressed in consultation with affected communities.