LNG Canada Fined $50K Over Underwater Noise Monitoring During Kitimat Tug Terminal Construction

Liam O'Connell

10/7/20262 min read

LNG Canada has been handed a $50,000 administrative penalty after a provincial regulator concluded the company failed to comply with underwater noise monitoring and marine mammal protection requirements during construction of a tug terminal in Kitimat.

The work formed part of Phase 1 of LNG Canada’s natural gas liquefaction and export facility on British Columbia’s North Coast, which began operations last year.

In a decision dated Sept. 17, B.C.’s Environmental Assessment Office said LNG Canada contravened conditions of its environmental assessment certificate on nearly two dozen days in May and June 2023 while carrying out pile-driving work.

Regulator Cites Multiple Monitoring Failures

The Environmental Assessment Office found LNG Canada failed to comply with several provisions contained in its approved marine mammal management and monitoring plan.

According to the decision, the company did not adequately monitor underwater noise levels at the predicted boundary of a designated marine mammal exclusion zone.

The regulator also found LNG Canada had not deployed multiple marine mammal observers during the work and had not used noise-reducing bubble curtains during all piling activities.

Those measures were required under the approved monitoring plan.

LNG Canada Disputes Findings

LNG Canada challenged the regulator’s conclusions, arguing that the issue was primarily procedural and related to whether the company should have formally consulted regulators before modifying how monitoring was conducted.

The company said it used vibratory pile-driving rather than impact pile-driving in an effort to reduce underwater noise.

LNG Canada argued that this change meant an originally prescribed 1.9-kilometre marine mammal exclusion zone was no longer necessary.

It also said it had followed the broader intent of its environmental approval by using what it described as an adaptive, risk-based monitoring approach.

According to the company, later hydroacoustic modelling showed underwater sound levels declined quickly and did not adversely affect marine mammals.

Regulator Says Approved Plan Had to Be Followed

The Environmental Assessment Office rejected LNG Canada’s argument.

It said the company remained legally bound by the approved monitoring plan unless and until that plan was formally amended or replaced.

“Regardless of whether LNGC's interpretation was reasonable, the approved Construction MMP remained in force during the 2023 piling program and had not been amended or replaced,” the decision states.

The regulator said the rules did not allow LNG Canada to substitute measures it considered more appropriate.

“It required LNGC to implement the approved MMP,” the decision reads.

Company Says Monitoring Has Since Been Strengthened

In a statement, an LNG Canada spokesperson said the company was reviewing the Environmental Assessment Office’s final determination.

The company said it had already taken “concrete steps” to address the concerns identified by the regulator and strengthen its monitoring and compliance systems.

That includes an updated marine monitoring plan that was approved by the province in 2025.

Phase 2 Expansion Moving Ahead

The federal government has identified LNG Canada as a project of national importance.

In late September, the company confirmed it would proceed with a planned $33-billion Phase 2 expansion of its Kitimat facility.

The expansion is expected to double the site’s annual LNG production capacity from 14 million tonnes to 28 million tonnes.

The $50,000 penalty relates specifically to the 2023 construction work and the company’s compliance with the environmental requirements in place at that time.

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