The federal government has unveiled a significant list of nation-building infrastructure projects, with a major liquefied natural gas (LNG) terminal and its associated pipeline taking center stage in a portfolio valued at $56 billion. Notably absent from the announcement was any new oil pipeline.
A Flagship LNG Project for Canada's Northwest
Prime Minister Mark Carney confirmed on Thursday that the Ksi Lisims LNG project has been referred to the new federal Major Projects Office. This facility, proposed for British Columbia's northwest coast, is poised to become the country's second largest LNG export terminal upon completion.
Carney emphasized the strategic importance of LNG, stating, "LNG is an essential fuel for the energy transition. LNG can help Canada build new trading relationships, especially in fast growing markets in Asia." He cited recent Shell PLC forecasts predicting a 60 per cent rise in global LNG demand by 2040.
The Prime Minister highlighted Canada's potential to supply up to 100 million tons annually of new LNG exports to Asia, a goal that will require substantial infrastructure investment. Canada is home to the world's fourth largest reserves of natural gas.
Project Details and Indigenous Partnership
The Ksi Lisims LNG project is a joint venture between the Nisga'a Nation, Houston-based developer Western LNG, and a consortium of mostly Canadian-headquartered gas producers known as Rockies LNG. The project has already received its major regulatory approvals.
A critical component is the construction of the Prince Rupert Gas Transmission (PRGT) pipeline, an approximately 800-kilometre natural gas pipeline through northern B.C. This pipeline will carry gas from the B.C.-Alberta Montney play, crossing the territories of several Indigenous nations before reaching its destination: a floating LNG terminal on Nisga'a Nation territory near Prince Rupert.
The Nisga'a Nation, which is a partner on the LNG project and a joint-owner of the pipeline with Western LNG, has indicated it is working with other Indigenous communities to negotiate project agreements, which could include equity stakes in the pipeline.
Environmental Profile and Challenges
A defining feature of the Ksi Lisims LNG project is its planned environmental profile. Prime Minister Carney stated that the facility is expected to run entirely on hydroelectricity, contingent on the completion of a planned $6-billion transmission upgrade in the region by the B.C. government. This would position it to be the world's lowest-carbon LNG operation.
However, the project faces opposition. Last month, the neighbouring Lax Kw'alaams Band and the Metlakatla First Nations launched two separate Federal Court challenges. Petitions have also been filed with the B.C. Supreme Court challenging the PRGT pipeline.
Broader Project List and Investment Decision
Beyond the headline LNG project, Thursday's announcement included three critical minerals developments in Ontario, Quebec, and New Brunswick, alongside major transmission and conservation projects in B.C., Nunavut, and the Yukon.
According to Western LNG chief executive Davis Thames, a final investment decision on the Ksi Lisims LNG project is anticipated early next year, marking a critical milestone for one of Canada's most ambitious energy export initiatives.
