Canada’s pipeline with potential LNG link cleared to move forward

A pipeline project being developed by NW Infrastructure Limited Partnership, a joint venture between Western LNG and the Nisga’a Nation, has received the environmental green light to continue with construction activities in Canada’s British Columbia.

As disclosed, Canada’s British Columbia Environmental Assessment Office (EAO) has issued a substantial start determination for the Prince Rupert Gas Transmission (PRGT) project, enabling its 2014-issued environmental assessment certificate (EAC) to remain valid.

The certificate required the project to have been substantially started by November 25, 2024, for it to remain in effect and allow construction to move forward. 

The determination represents the culmination of the detailed assessment process EAO kicked off at the end of November 2024 to review construction and other project-related activities up to the November 25, 2024 substantial start deadline.

Now that the positive determination has been issued, EAO compliance and enforcement officers intend to continue to monitor the PRGT project throughout construction and operation to ensure the project meets all requirements listed in the EAC.

Western LNG sees this as the culmination of years of planning, investment, and on-the-ground work completed to date. Gradual ramp-up of construction activities is expected in the following weeks, including conducting detailed surveys along the pipeline’s right of way. 

Eva Clayton, President of Nisga’a Lisims Government, said: “This project, and the Ksi Lisims LNG project, marks a turning point. For too long, Indigenous Nations have watched resource development happen around us, instead of with us. PRGT is different—it is Indigenous-owned, Indigenous-led, and grounded in a model of partnership that puts our communities at the centre of decision-making. 

“We are delighted that other Nations along the route have expressed interest in joining us as equity owners in PRGT. Together we can help shape a new era where Indigenous leadership is not the exception, but the expectation.”

According to Western LNG, the next phase will include continued engagement with Indigenous Nations to update project agreements, share detailed construction plans, and gather feedback on management plans. The developer says it remains committed to meaningful dialogue, ensuring that Nations have input on the project’s future.

“The PRGT and Ksi Lisims LNG projects will be an important source of new LNG supply as developing countries increase their electricity generation capacity. Supplying this growth with clean, responsible Canadian LNG will not only help those countries develop economically and reduce poverty but will also avoid significant carbon and methane emissions resulting from longer shipping routes and older technology,” said Davis Thames, President, CEO, and Founder of Western LNG. 

As disclosed by Western LNG, approximately $600 million has been invested in development and construction activities for the PRGT project since it started.

Additionally, construction activities in 2024 included approximately $25 million of Indigenous procurement and subcontracting opportunities, and an Indigenous employment rate of 30%, said to be three times the average for large projects in the region. 

Together with Rockies LNG, Nisga’a Nation, and Western LNG are developing the Ksi Lisims LNG project, which is proposed to be connected to the PRGT project under the pipeline’s Marine Route Alternative Amendment submitted to the EAO in June 2024. 

Boasting a capacity of 12 million tons per year (mtpa) from two floating LNG production and storage facilities, the Ksi Lisims facility will be fully electrified and powered by hydroelectricity, making it what the developers say is one of the lowest CO2-emitting LNG projects in the world.

Pending the EAO’s approval, the PRGT pipeline route terminus is set to end at the proposed Ksi Lisims LNG site on Pearse Island, which is currently undergoing an environmental assessment. According to the developer, this potential delivery corridor would allow Canada to reinforce its role as a secure and responsible source of natural gas.

TotalEnergies recently acquired a 5% stake in Western LNG. This will enable the French major to boost its stake in Western LNG once certain milestones are achieved and, together with other investors, take a direct stake in the plant up to approximately 10% when the FID is made.

At the start of this year, new equity funding was secured to fully support the remaining development activities for the Ksi Lisims LNG plant through to an FID. Once the FID is taken and regulatory approvals are secured, commercial operations are anticipated to start in late 2028 or 2029.