The British Columbia government has officially approved the construction of a new natural gas pipeline that aims to supply a proposed floating liquefied natural gas (LNG) export terminal off the province's North Coast. This project, known as the Prince Rupert Gas Transmission, is a collaboration between the Nisga'a Nation and Texas-based Western LNG.
The pipeline will stretch approximately 900 kilometers, originally intended to run from Hudson's Hope in northeastern B.C. to Lelu Island, near Prince Rupert. However, recent updates to the project have shifted the starting point to Chetwynd to avoid disrupting caribou habitats. Additionally, an alternative terminus has been proposed at Wil Milit on Pearse Island, located about 82 kilometers north of Prince Rupert and closer to the planned Ksi Lisims LNG export facility.
The Nisga'a Nation and Western LNG project that the Ksi Lisims facility will be capable of producing 12 million tonnes of LNG annually. This approval comes amid a renewed interest in LNG export facilities, which proponents argue could help diversify Canada’s energy sector and reduce its reliance on the United States.
Despite the approval, the project faces significant opposition. Groups such as the Gitanyow Hereditary Chiefs have raised concerns about the potential risks to vital salmon habitats and the broader implications for climate change. Tara Marsden, sustainability director for the Gitanyow hereditary chiefs, expressed her worries, stating, "The push to approve new projects in the face of economic threats from the U.S. could sideline environmental concerns."
The pipeline was initially approved in 2015 under Calgary-based TC Energy Corp. It was intended to supply the now-canceled Pacific NorthWest LNG terminal, which was led by Malaysian energy giant Petronas. In 2024, the Nisga'a Nation and Western LNG acquired the project and revised it to align with the Ksi Lisims facility.
Simoogit Herb Morven, chairperson of the Council of Elders for the Nisga’a Nation, provided a blessing for the project as preliminary construction began in August 2024. However, the partners faced a deadline to demonstrate that construction had "substantially started" by the end of November 2024, or risk having their permits expire.
The construction process has not been without challenges. Protests led by Gitanyow hereditary chiefs included blockades aimed at preventing construction workers from accessing their territory. Marsden highlighted the financial backing of Western LNG from Blackstone Inc., an American asset manager, as a point of contention, suggesting it undermines the project's purported goal of reducing dependence on U.S. energy.
In contrast, Eva Clayton, president of the Nisga'a Lisims government, framed the project as an opportunity for Indigenous people to develop a pipeline in their own way. She stated, "By working together, and with world-leading construction managers, we're confident this project will set a new bar for environmental protection and leave a legacy of prosperity for Nations across B.C."
The environmental impact of LNG production remains a contentious issue. While LNG is often labeled as a cleaner alternative to coal or oil, critics argue that the extraction process, particularly hydraulic fracturing, has significant environmental costs. This method involves injecting a mixture of water, sand, and chemicals into the ground to release natural gas, which has been linked to increased seismic activity in B.C.'s Peace River region.
Currently, the LNG Canada facility in Kitimat is preparing for its first exports, with several other projects, including Ksi Lisims, at various stages of approval. The previous iteration of the project, backed by Petronas, was abandoned in 2017 due to declining LNG prices. If the Ksi Lisims project receives final approval in 2025, it could be operational by 2029.