B.C. and Ottawa Approve Controversial Floating LNG Project Despite First Nations, Environmental Pushback

Vancouver, September 16, 2025– The British Columbia and federal governments have given the green light to the Ksi Lisims LNG project, a massive floating export terminal off the province’s northwest coast, despite opposition from several First Nations and environmental groups.

B.C. Environment Minister Tamara Davidson and B.C. Energy Minister Adrian Dix jointly approved an environmental assessment certificate for the project on Monday. Federal Environment Minister Julie Dabrusin also announced Ottawa’s decision to allow the proposal to move to the next stage of permits and authorizations.

The project is being advanced through a partnership between the Nisga’a Nation, Rockies LNG Limited Partnership and Western LNG, though documents confirm its assets will be built, owned, and operated by subsidiaries of Houston-based Western LNG.

Designed to handle up to two billion cubic feet of natural gas daily, the facility will liquefy and export around 12 million tonnes of LNG per year, with operations targeted for late 2028 or 2029. That output is nearly equal to the first phase of the LNG Canada project in Kitimat.

The B.C. Environmental Assessment Office (EAO) said the project, planned off Pearse Island, would create up to 450 construction jobs and 250 permanent positions. However, consultations revealed deep divisions among Indigenous communities. While the Gitga’at and Kitselas First Nations granted consent, the Lax Kw’alaams, Metlakatla, and Kitsumkalum withheld support. The Gitxalaa Nation did not respond, and the Haida Nation formally opposed the project, citing concerns over vessel traffic in their territorial waters.

“In making their decision, the ministers acknowledged that while not all First Nations’ concerns have been resolved, they are satisfied that the conditions and requirements reasonably avoid, minimize and accommodate potential adverse effects,” the EAO said in a statement.

The project must comply with 23 legally binding conditions, including alignment with B.C.’s net-zero emissions policy, prioritization of Indigenous and regional hiring, and a health and medical plan to offset strain on local services.

Environmental groups condemned the approval. “Approving another LNG project means more pollution, higher climate risks, and greater harm to our health,” said Thomas Green, senior climate policy adviser with the David Suzuki Foundation.

The Ksi Lisims project will feature two floating LNG structures, while land-based support facilities will be built on Nisga’a Nation territory. B.C. ministers said they have urged Ottawa to address unresolved First Nations concerns about marine shipping impacts.