Canada approved a C$10 billion ($7.3 billion) floating terminal to ship liquefied natural gas off its northwest coast by as soon as 2028.
Ksi Lisims LNG - backed by Blackstone Inc.-funded Western LNG, and Rockies LNG Partners and the Nisga'a Nation, a First Nation owning land upon which the project is being established - was the first such big project greenlit under Prime Minister Mark Carney. The former central banker has taken a more relaxed environmental tack than predecessor Justin Trudeau as he aims to expand Canada's economy and reduce its trading reliance on the U.S.
If its backers decide to proceed with investment, Ksi Lisims LNG can produce 12 million metric tons a year. That would be the second-largest LNG export facility in Canada, after the first phase of LNG Canada - a megaproject backed by Shell Plc that started shipping gas to Asia in June.
Ksi Lisims LNG is the exact kind of development Canada's new government is spearheading, encouraging and sanctioning," said Energy Minister Tim Hodgson in an announcement on X. "This sanction sends a resolute message: Canada is open for business, and committed to the long-term vitality of our responsible, low-carbon export and natural gas industries.".
In September, Carney previously had launched a Major Projects Office to accelerate those developments that are deemed to be of national interest. The second phase of LNG Canada - doubling its capacity - was among its first five projects.
Houston-based Western LNG has been backed by asset manager behemoth Blackstone. Rockies LNG is a collective of Western Canadian oil and gas companies like Birchcliff Energy Ltd, Tourmaline Oil Corp. and Whitecap Resources Inc.
Representatives for the Nisga'a Nation, Rockies LNG and Western LNG did not return calls for comment after working hours.