BC Upholds Prince Rupert Gas Pipeline Permit

British Columbia’s Environmental Assessment Office (EAO) determined that the Prince Rupert Gas Transmission natural gas pipeline project (PRGT) has been “substantially started”, so its environmental certificate remains valid.

The certificate approving PRGT, acquired by the Nisga’a Nation and Western LNG LLC from TC Energy Corp. in March 2024, was issued 2014 following an environmental assessment. The authorization required the project to have been substantially commenced by November 2024 to remain valid, according to BC’s Ministry of Environment and Parks.

“With this decision, the certificate remains in effect for the life of the project, unless it is canceled or suspended pursuant to the Environmental Assessment Act”, the ministry said in an online statement Thursday.

With a planned capacity of about 2 billion cubic feet a day (Bcfd), expandable to around 3.6 Bcfd, PRGT would deliver natural gas from northeastern BC to the Ksi Lisims LNG facility on Nisga’a Nation territory. With a planned capacity of 12 million metric tons a year, the liquefaction plant is expected to become operational 2029. Construction on the plant could start this year, according to Ksi Lisims LNG LP, a partnership between the Nisga’a Nation, Rockies LNG Partners and Western LNG.

The pipeline had been planned to run about 900 kilometers (559.23 miles), with land and marine sections, between northeastern BC and Lelu Island near Prince Rupert at the site of a different LNG project that was later canceled. In 2024 the Ksi Lisims LNG partners applied to the EAO to change the pipeline route to end at their project’s site. The requested amendment is under review, according to the ministry.

“The EAO is also assessing a separate amendment request received in 2024 to reroute the eastern portion of the pipeline between Chetwynd and Mackenzie, which includes moving the route south to follow part of an existing cleared right of way and shortening it by about 50 kilometers”, the ministry said.

So far 42 kilometers of right-of-way have been cleared, 47 kilometers of access roads paved and nine permanent bridges installed, according to the PRGT owners.

“Construction activities during 2024 included approximately $25 million of Indigenous procurement and subcontracting opportunities, over $13 million in expenditures within the local community of Terrace, and an Indigenous employment rate of 30 percent, triple the average for large projects in the region”, Western LNG and the Nisga’a Nation said in a separate statement.

“PRGT will continue gradually ramping up construction activities – including conducting detailed surveys along the pipeline’s right of way in the coming weeks”, they said.

“Importantly, this next phase will include continued engagement with Indigenous Nations to update project agreements, share detailed construction plans, and gather feedback on management plans”, they said.

Eva Clayton, president of the 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 center of decision-making”.

“We are delighted that other Nations along the route have expressed interest in joining us as equity owners in PRGT”, Clayton added.

To contact the author, email jov.onsat@rigzone.com