B.C. Court Dismisses Gitanyow Challenge to $10B Ksi Lisims LNG Project

The proposed Ksi Lisims LNG project in northwest B.C. has survived a major legal challenge after a B.C. Supreme Court judge dismissed a petition from Gitanyow hereditary chiefs who argued the province had failed to properly consult them.

The Nisga’a Nation and U.S.-based Western LNG are behind the $10-billion project, which would see a floating terminal north of Prince Rupert capable of producing 12 million tonnes of liquefied natural gas annually. The proposal has faced pushback from environmental groups and the Gitanyow, who say the development poses risks to salmon habitat in the Nass watershed.

The hereditary chiefs filed their challenge in October 2023, asking the court to pause the province’s environmental assessment process. They argued the B.C. Environmental Assessment Office (EAO) excluded them from meaningful participation. But in a decision released Aug. 29, Justice Jennifer Lynn Whately rejected that claim.

“I find that the Gitanyow were afforded a fair and open opportunity to air their concerns with the EAO,” she wrote, noting that the province had engaged with the chiefs following correspondence sent in November 2023 and had incorporated their input in later stages of review.

The court found the EAO’s assessment determined potential impacts to salmon would be “moderate and localized,” and that key habitats such as bull kelp beds would face only temporary disruption. Whately concluded the Crown’s duty to consult had been met, even though the Gitanyow were not formally recognized as a participating nation.

The Ksi Lisims project, first assessed in 2021, remains in the latter stages of environmental review. If approved, it would represent one of the largest LNG facilities on Canada’s West Coast.

The Gitanyow hereditary chiefs, the Nisga’a Nation, and the province have not yet issued public responses to the ruling.