The Nisga’a Nation, Western LNG and a group of natural gas producers are partners in the Ksi Lisims project near Gitlaxt’aamiks.Jesse Winter/The Globe and Mail
A contentious pipeline project backed by the Nisga’a Nation is seeking to win over other Indigenous groups while a new study warns of economic challenges ahead for exporting liquefied natural gas from British Columbia.
Prince Rupert Gas Transmission (PRGT), co-owned 50-50 by the Nisga’a Nation and Houston-based Western LNG, received approval from B.C.’s environmental regulator last week for further construction of the pipeline that would transport natural gas across Northern B.C.
The B.C. Environmental Assessment Office ruled that PRGT has been substantially started, clearing the way for the project to proceed and extending an environmental assessment certificate that dates back to 2014.
Alex MacLennan, the regulator’s chief executive assessment officer, made the decision as he noted the need to “balance economic development, reconciliation with Indigenous peoples and environmental protection.”
PRGT could cost between $10-billion and $12-billion to construct a 750-kilometre pipeline that would supply the future Ksi Lisims LNG facility, which is undergoing an environmental review.
PRGT has stated that it “prioritizes a strong, positive relationship with First Nations along the pipeline route,” according to a 74-page report by the environmental office, which added that from 2012 to 2023, PRGT held more than 1,100 meetings with 20 First Nations near the route.
Options include co-ownership in PRGT for other First Nations. “Together we can help shape a new era where Indigenous leadership is not the exception, but the expectation,” Eva Clayton, elected president of the Nisga’a Lisims government, said in a statement.
In mid-2024, the Nisga’a Nation and Western acquired PRGT from Calgary-based TC Energy Corp. TRP-T
The Nisga’a Nation, Western and a group of natural gas producers called Rockies LNG are partners in the Ksi Lisims project near Gitlaxt’aamiks, which is home to the Nisga’a Lisims government led by Ms. Clayton.
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The Institute for Energy Economics and Financial Analysis (IEEFA), a U.S.-based research group, cautions that the costs for Ksi Lisims alone could skyrocket beyond the current estimate of $10-billion, including two floating liquefaction facilities to be built in South Korea.
IEEFA questioned the financial viability of Ksi Lisims because of cost pressures and other factors such as a potential supply glut of LNG globally: “At this point, both the project and Canada’s broader LNG ambitions remain vulnerable to formidable headwinds.”
The pipeline route was originally intended to extend nearly 900 kilometres from northeast B.C. to Lelu Island near Prince Rupert, and supply natural gas to Pacific NorthWest LNG. But Malaysia’s state-owned Petronas cancelled the Pacific NorthWest joint venture in 2017.
Gitanyow hereditary chiefs and several Gitxsan Nation leaders are opposed to the pipeline route, which would cross their traditional territories.
“We are fighting for the right to prevent environmental destruction on our territory and address our concerns that LNG development is further accelerating the climate crisis,” Tara Marsden, sustainability director for Gitanyow hereditary chiefs, said in a news release this week.
“Once again, it feels like we are headed into a long, hot summer,” said Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs.
The Lax Kw’alaams Band has cited climate concerns, expressing skepticism about the goal of net-zero emissions of greenhouse gases from Ksi Lisims.
Ksi Lisims has plans to initially use temporary barges that would supply electricity generated by natural gas-fired turbines.
BC Hydro is proposing the North Coast transmission project, in collaboration with First Nations, that would run along the existing route of its B.C. line between Prince George and Terrace, but the venture could take a decade to complete.
Ksi Lisims plans to make a final investment decision by the end of this year, in hopes of starting LNG exports to Asia in 2029.
LNG Canada will become the country’s first export terminal for the fuel when it begins shipments to Asia from Kitimat, B.C., within weeks.