Canada’s Ksi Lisims LNG Project Gains Momentum with New Equity Funding

Canada’s proposed 12-million-tonne-per-year liquefied natural gas (LNG) project on Pearse Island at the northwest coast of British Columbia (B.C.) is off to a great start in 2025 with new equity funding in place to fully support remaining development activities through to a final investment decision (FID), which is targeted to come later this year for the planned floating LNG (FLNG) facility and marine terminal on Nisga’a Nation treaty land.

Located at Wil Milit, approximately 15 kilometers west of Gingolx, on the northern end of Pearse Island, the Ksi Lisims LNG project, co-developed by the Nisga’a Nation, Western LNG, and Rockies LNG, is anticipated to become a world leader in lower-carbon LNG production, powered by renewable hydroelectricity. The proposed site encompasses undeveloped, but previously logged, land close to existing shipping routes, enabling shorter distances to Asian markets.

Environmental Assessment and Regulatory Milestones

The Prince Rupert Gas Transmission (PRGT) project, related to this development, is co-owned by Western LNG and the Nisga’a Nation, with a future equity ownership opportunity also under development for other Indigenous nations along the pipeline corridor. Once connected to B.C. hydropower, the project’s emissions intensity is estimated to be 0.02 tonnes of CO2e per tonne of LNG.

Following the initial project description filing in April 2021, Ksi Lisims LNG’s application for an environmental certificate has undergone a comprehensive technical review. The Environmental Assessment Office (EAO) has released a draft assessment report for public comment, paving the way for a final investment decision later this year.

Overcoming Challenges and Securing Funding

The inroads made in bringing the proposed $9 billion Ksi Lisims LNG project and PRGT pipeline to life come in the wake of a seven-year hiatus that impeded progress after previous developers dropped the project in 2017. The project faced challenges, including court disputes and environmental concerns.

Since Western LNG completed a private placement of equity securities on December 30, 2024, securing over $150 million in commitments, the funding has lifted cumulative investments in these projects to more than $265 million. Blackstone Energy Transition Partners has anchored this investment, underscoring investor confidence in the viability of the projects.

Driving Economic Growth and Sustainability

The Ksi Lisims LNG project is expected to create significant revenue for British Columbia, Alberta, and Canada, generating employment opportunities and tax revenues. With the potential to create thousands of direct and indirect jobs, the project could contribute billions to the Canadian economy while meeting global energy needs.

JP Munfa, Senior Managing Director at Blackstone Energy Transition Partners, highlighted the project’s innovative approach and strong Indigenous partnerships, positioning it to play a critical role in meeting the world’s growing cleaner energy needs.

With the required equity capital in place, the stage is set for the Ksi Lisims LNG project to move towards construction and eventual operations, bringing clean energy and economic benefits to the region.