(Bloomberg) – Canada has cleared a C$10 billion ($7.3 billion) floating facility to export liquefied natural gas off its northwest coast as soon as 2028.
Ksi Lisims LNG — backed by Blackstone Inc.-funded Western LNG, as well as Rockies LNG Partners and the Nisga’a Nation, an Indigenous group that owns the development land — is the first such major project to be approved under Prime Minister Mark Carney. The former central banker has taken a less strict environmental stance than predecessor Justin Trudeau, as he pushes to boost Canada’s economy and reduce its trading reliance on the U.S.
If its backers decide to proceed with investment, Ksi Lisims LNG will have a capacity of 12 million metric tons a year. That would make it the second-largest export facility in Canada, after the first phase of LNG Canada — a mega-project backed by Shell Plc that started shipping gas to Asia in June.
“Ksi Lisims LNG is exactly the kind of development Canada’s new government is championing, advancing and approving,” Energy Minister Tim Hodgson said in a statement on X. “This approval sends a clear signal: Canada is open for business, and committed to the long-term strength of our responsible, low-carbon export and natural gas sectors.”
Earlier in September, Carney launched a Major Projects Office designed to expedite developments deemed to be in the national interest. The second phase of LNG Canada — which would double its capacity — was on the list of its first five projects.
Houston-based Western LNG has received financial backing from asset management giant Blackstone. Alberta-based Rockies LNG is a group of Western Canadian energy companies including Birchcliff Energy Ltd, Tourmaline Oil Corp. and Whitecap Resources Inc.
Representatives for the Nisga’a Nation, Rockies LNG and Western LNG didn’t respond to requests for comment outside of ordinary business hours.
