Canada approves Ksi Lisims LNG project after British Columbia’s assessment
The federal government has approved the Ksi Lisims LNG – Natural Gas Liquefaction and Marine Terminal Project, following an environmental review carried out by the Government of British Columbia. The decision was made under Canada’s updated Impact Assessment Act, which allows for a “substituted assessment” where a provincial review can meet federal requirements.
Environment and Climate Change Minister Julie Dabrusin said the move reflects a “one project, one review” approach that balances efficiency, environmental safeguards, and reconciliation with Indigenous Peoples. The assessment was completed in partnership with the Nisg̱a’a Nation, one of the project’s key proponents.
The federal government concluded that while the project is likely to cause certain adverse environmental effects—such as impacts on fish, birds, and Indigenous land use—these can be mitigated and are justified in the public interest. The approval comes with legally binding conditions, requiring the project’s backers to protect wildlife habitats, safeguard Indigenous health and culture, and ensure Indigenous rights are respected throughout the project’s life.
The proponents—Nisg̱a’a Nation, Rockies LNG Limited Partnership, and Western LNG LLC—must also follow a monitoring programme to ensure mitigation measures are effective. Indigenous communities will play an ongoing role in overseeing compliance.
Beyond environmental concerns, the decision was influenced by economic and strategic factors, including the project’s potential to advance economic reconciliation with Indigenous Peoples and strengthen Canada’s role in global energy markets.
This marks the first approval under the revised Impact Assessment Act using British Columbia’s Environmental Assessment Act as the substituted process. Officials see it as a precedent for how major resource projects can be reviewed in future.
However, the project remains controversial. Some First Nations have voiced opposition, citing risks to the environment and cultural heritage. Questions also linger about the project’s greenhouse gas emissions and whether BC Hydro can supply the renewable power needed to operate the facility.
At the heart of the proposal is a 12-million-tonne-per-year liquefied natural gas export facility, to be built at Wil Milit on Pearse Island, roughly 15 kilometres west of Gingolx in British Columbia. The site sits on treaty land owned by the Nisg̱a’a Nation, anchoring the project firmly in Indigenous governance and economic participation.
The developers say the facility is designed to be net-zero ready by 2030. Its emissions plan rests on three pillars: deploying low-emission technologies, offsetting unavoidable emissions with credible local projects, and continually improving operations as new methods emerge. Once linked to BC Hydro’s grid, the terminal’s emissions intensity is projected at 0.02 tonnes of CO₂ equivalent per tonne of LNG — among the lowest in the world. If hydropower supply is delayed, temporary power barges would be used, with emissions still kept below provincial benchmarks.
Supporters argue the project’s geographic advantage will also reduce its climate impact, with shorter shipping routes to Asia compared with competitors. They highlight the use of renewable hydropower, lower upstream emissions of Canadian natural gas, and reduced lifecycle emissions as reasons why Ksi Lisims LNG could provide one of the cleanest LNG supplies globally.
Economically, the project promises jobs, training, business opportunities, and tax revenues, particularly for Indigenous Nations and local communities in northern British Columbia. The Nisg̱a’a Nation has emphasised its role as an equal partner, framing the project as an exercise in economic self-determination.
With regulatory approval in place, the project partners are expected to make a final investment decision before the end of 2025. If construction begins on schedule, the facility could enter operation by 2029.
