KITIMAT, British Columbia — The Ksi Lisims LNG project has cleared its provincial environmental review and is now in the hands of B.C. decision-makers. The Environmental Assessment Office said it has finished its assessment and referred the file to the ministers. The province now has 30 days to decide whether to issue an environmental assessment certificate.
The proposed project is a floating liquefied natural gas facility at the northern tip of Pearse Island on B.C.’s northwest coast. The site is near the Nisga’a village of Gingolx. Project partners say the plant is designed for about 12 million tonnes per year of LNG, with shipments aimed at Asia-Pacific buyers.
The referral triggers a formal clock for the provincial decision. The B.C. ministers responsible for Environment and Parks and for Energy and Climate Solutions will decide whether the project meets the conditions for a certificate. That certificate is required before major construction can proceed. If approved, it will come with binding conditions and compliance requirements.
A federal decision is also needed. The B.C. Environmental Assessment Office completed the review on behalf of the federal government in coordination with the Impact Assessment Agency of Canada. The assessment record, analysis and recommendations have been sent to federal officials. The province says it will post the materials prepared for provincial decision-makers on the project page after ministers issue their decision.
Ksi Lisims LNG is being advanced by the Nisga’a Nation, Rockies LNG and Western LNG. The proposal is notable for its Indigenous leadership and for its plan to use hydroelectric power for a fully electrified plant. The partners say this design would keep the project’s emissions intensity low compared with many global LNG facilities.
Commercial interest has grown over the past year. In May, TotalEnergies agreed to purchase two million tonnes per year for 20 years, subject to the project’s final investment decision. The same agreement gave the company a minority stake in Western LNG and options to increase its interest if the project moves ahead. The offtake supports financing and marketing for the first phase.
Gas supply would come from northeastern B.C. via the Prince Rupert Gas Transmission project, known as PRGT. In June, the province ruled PRGT “substantially started,” a finding that keeps its environmental certificate in force. PRGT was acquired in 2024 by a Nisga’a-affiliated partnership and Western LNG. The pipeline proponent has also applied to amend the route so the line ends at Pearse Island rather than Lelu Island. That amendment is still under review.
The Ksi Lisims assessment covered effects on air, water, marine habitat, wildlife, archaeology and community values. It also reviewed marine shipping, emergency response and cumulative effects. Consultation included Nisga’a Nation, other Indigenous governments, local governments, federal departments, provincial agencies and the public. The file contains technical studies, mitigation plans and proposed conditions meant to avoid, reduce or offset project impacts.
If ministers issue a certificate, the project would then move to permit applications, detailed engineering and financing. Federal reviewers would also weigh in with their own decision timeline. The owners have not announced a final investment decision or a construction schedule. They say timing will depend on permits, commercial agreements and market conditions.
Supporters argue the project would add construction jobs and long-term operations roles in the region. They also point to potential Indigenous equity and revenue sharing as a way to keep more benefits in local communities. Opponents have raised concerns about greenhouse gas emissions, marine traffic and effects on sensitive ecosystems on the North Coast. The assessment record includes measures to manage noise, lighting, dredging, fish habitat offsetting and spill prevention.
Pearse Island is a remote location at the entrance to Portland Inlet. The site would include the floating liquefaction facility, storage, marine loading, a power substation and connections to the pipeline. Because the plant is designed as a floating unit, much of the process equipment would be built in a shipyard and towed to the site. That approach can shorten on-site construction time and reduce some local impacts compared with a full onshore build.
The project partners have emphasized power supply as a key piece of the plan. The design calls for hydroelectric power delivered through the regional grid to drive major equipment. Grid connections, reliability and potential reinforcement would be handled through separate regulatory processes. The owners say electrification is central to meeting B.C. standards and customer expectations for low-carbon LNG.
For now, the next step is clear. B.C. ministers will weigh the assessment, conditions and public interest tests over the next month. If they issue a certificate, federal decision-makers will proceed with their own review. If either level of government declines, the project would have to address the reasons or halt.
Once the provincial decision is made, the Environmental Assessment Office says it will post the decision package to the public registry. That record will include the ministers’ reasons, the final list of conditions and a summary of how Indigenous and public input was considered. The posting will also set out compliance and enforcement expectations if the project proceeds.
Ksi Lisims LNG has positioned itself as an Indigenous-led, lower-emission project aimed at Asia-Pacific markets. With the environmental review now complete, the proposal has reached a decisive point. The 30-day clock starts the final provincial test. What happens next will depend on the ministers’ call, the federal outcome and whether the owners can align permits, power and customers into a bankable plan.
