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The Nisga’a led LNG project still faces a challenge from the American Alaska LNG.
By Geoff Russ
By Resource Works
More News and Views From Resource Works Here
As many expected, Ksi Lisims LNG is on the list of major projects to be fast-tracked by the federal government.
British Columbia has already given a conditional green light to one of the most ambitious Indigenous-led energy projects in Canada’s history.
Ksi Lisims LNG, a floating facility planned on Nisga’a Nation territory about 80 kilometres north of Prince Rupert, is being cast as a turning point in Canada’s bid to sell liquefied natural gas to Asia.
In September, the province issued an environmental assessment certificate for Ksi Lisims.
The project, led by the Nisga’a together with Western LNG and Rockies LNG, is designed to produce 12 million tonnes per year, with peak construction employment of roughly 800 and about 150 to 250 permanent operating positions. It has the potential to add $24 billion to Canada’s economy over 30 years.
The timing is no accident. The United States is moving just as quickly, pushing a rival Alaska LNG project that could siphon off the very same customers.
Ottawa confirmed its own conditional approval shortly after Victoria’s decision. The B.C. certificate includes 23 enforceable conditions, a greenhouse gas plan, and the expectation the project will eventually connect to BC Hydro, details echoed in The Globe and Mail’s report and interview with Nisga’a Lisims Government President Eva Clayton, who called the project “what reconciliation looks like.”
Eby, who has argued that geography, Indigenous partnerships and reliability will help “win this race” to deliver LNG to Asia, linked the Ksi Lisims milestone to a broader provincial strategy that now includes shipments from LNG Canada’s Kitimat terminal, which loaded its first cargo in July, and the Indigenous-led Cedar LNG project near Kitimat.
He set out that case in late July while announcing a 200 million dollar provincial infrastructure agreement for Cedar LNG, matched by federal funding, and argued Canada offers partners a direct, affordable, and dependable route to Asia.
Ksi Lisims still requires a major feed-gas line. The proponents have acquired the 750 kilometre Prince Rupert Gas Transmission project, which would move gas from northeast B.C. to the site, with capital costs that could reach 12 billion dollars.
The route faces opposition from Gitanyow hereditary chiefs and some Gitxsan leaders, and the province acknowledged not all First Nations concerns have been resolved. The certificate lays out measures to mitigate impacts on wildlife habitat and establishes reporting mechanisms for First Nations and mariners, with continued consultation commitments.
Backers say the approvals give Ksi Lisims a clearer path to a final investment decision targeted for later this year, positioning it as Canada’s second-largest LNG export facility after LNG Canada Phase 1.
The project could add 24 billion dollars to Canada’s economy over 30 years and support up to 77,000 full-time equivalent jobs nationwide, the majority in B.C., while highlighting upstream methane reductions and strong public support for LNG.
The regional race is intensifying. South of the border, the challenge is real. President Donald Trump ordered federal agencies in January to prioritise Alaska’s project and expedite permits for the long-proposed 800 mile pipeline and Nikiski export terminal.
In June, The New York Times detailed how the project has become a centrepiece of U.S. efforts to boost fossil fuel production and an economic lifeline for communities around Nikiski, while noting persistent questions about feasibility and financing.
This month, Reuters reported that Japan hired energy consultancy Wood Mackenzie to assess the Alaska plan, signalling Tokyo is seriously weighing offtake and investment options.
For years, Alaska LNG looked like a dream too expensive to build. Now, with White House backing and Japanese interest, it looks far less fanciful.
That’s why the race is tightening. Canada has geography on its side, but Alaska has Washington. Canada has Indigenous partnerships, but also Indigenous opposition. Both sides promise jobs, revenues, and security of supply. Both face the same questions about financing, feasibility, and the climate math.
The stakes go well beyond B.C.’s northwest coast. For buyers in Tokyo, Seoul, and Taipei, the choice isn’t between Alaska and Canada, it’s whether either can deliver at scale, on time, and with fewer political headaches.
Ksi Lisims’ approval is a clear step forward, but not yet a victory lap. To beat Alaska, Canada must prove it can close deals, resolve Indigenous disputes, and meet its own climate commitments.
If it can’t, the Pacific LNG race may be won not in Victoria or Ottawa, but in Washington.
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