A British Columbia First Nation is proposing to build a new liquefied natural gas (LNG) export facility on community treaty land and making an environmental pledge to reach net-zero emissions within three years of starting operations .
Nisga Nation, whose territory is north of Prince Rupert near the Alaska border, is partnering with a group of western Canadian natural gas producers called Rockies LNG Partners and Texas-based energy company Western LNG.
The project is called KSI Lisims LNG and will include a pipeline to transport natural gas from the northeastern corner of the province to the coast. The facility itself is estimated to cost $10 billion.
The cooled natural gas will be loaded onto ships and exported to Asia.
Project proponents are due to announce the project on Monday, and will begin applying for necessary government permits and begin formal talks with communities in the area.
The project will undergo an environmental assessment as part of a joint-regulatory review by the federal, provincial and Nisga governments.
In 2000, Nisga’a and the governments of Canada and BC signed a treaty that gave Nisga’a control over an area of approximately 2,000 square kilometers in BC’s Nass Valley.
“Attracting the economic base for our treaty lands in the Naas Valley has been a long-standing priority for the Nisga Nation,” Eva Clayton, president of the Nisga Nation, said in a release.
“That is why, for close to a decade, our nation has worked to attract a world-leading LNG project to our Treaty Land, and today we are required to begin the formal regulatory process for our project, KSI Lysims LNG. Why are you proud?”
The project comes at a time when several other LNG proposals for BC’s coast have either been shelved or canceled.
Asian prices for LNG are at several-year highs as global demand for natural gas strengthens to meet the electricity generation needs of many countries this summer.
net zero goal
The ownership of Ksi Lisims LNG is still being determined as proponents continue to finalize commercial agreements.
The economic impact of Ksi Lisims LNG is estimated to be $55-billion, including facility, pipeline and natural gas production over 30 years.
Ksi Lisims is in talks with two companies to build the LNG pipeline. Enbridge’s Westcoast Connector gas transmission project and TC Energy’s Prince Rupert gas transmission project both already have environmental clearances as they were to transport natural gas for the now-cancelled LNG export projects in the Prince Rupert area.
Company officials say the LNG facility could be operational in late 2027 or 2028 and reach net zero emissions within three years of startup through the use of hydropower, energy efficiency, carbon offsets and potential carbon capture and storage. is.
Net-zero emissions mean that any emissions of greenhouse gases produced are offset by other measures.
The floating liquefaction facility will be located near the village of Gingolx, a coastal community about 80 km north of Prince Rupert. The project will be able to produce 12 million tonnes of LNG per year and generate 4,000 construction jobs.
The facility will be roughly the same size as the first phase of the LNG Canada project, led by Shell Canada and now under construction near Kitimat. In the initial phase, 14 million tonnes of natural gas can be exported.
A much smaller project near Squamish, Woodfiber LNG, is expected to reach a final investment decision on its proposed facility later this year, which will produce 2.1 million tons of LNG per year.
Last month, Hasla Nation announced a partnership with Pembina Pipeline on a planned three-million-ton project called Cedar LNG near Kitimat.