B.C. First Nations make legal challenges to huge Ksi Lisims LNG project

VANCOUVER — Two British Columbia First Nations are taking the federal government to court to quash a decision approving the Ksi Lisims floating natural-gas facility and marine export terminal.

The Lax Kw’alaams Band and the Metlakatla First Nation filed separate judicial review applications in Federal Court earlier this month, alleging the Minister of Environment and Climate Change ignored their concerns about the adverse impacts of the massive LNG project.

The  Impact Assessment Agency of Canada announced last month that the minister had given the greenlight to the facility off the northwest coast of B.C.

Federal Energy Minister Tim Hodgson hailed the decision — which came just hours after B.C. issued an approval — as an example of the federal government’s “one project, one review” system in which it relied on the province for its assessment.

But the Metlakatla First Nation alleges in Oct. 14 court documents that the decision relied on “speculative economic concepts” to justify the project’s adverse impacts, while ignoring “mounting evidence” that it is not economically feasible.

The Metlatkatla’s application lists several concerns it brought up with the provincial Environmental Assessment Office earlier this year.

The Metlakatla claimed that project materials were out of date, the project’s gas production had no “dedicated buyer,” the global market faced a looming glut due to a surge in production, and that the project planned to utilize “unproven and untested” floating barge technology.

The application also says a provincial employee conducted a “flawed analysis” that inappropriately raised doubt about the strength of an Aboriginal title claim by the Coast Tsimshian people to the Mylor Peninsula, where a transmission line needs to be built to power the project.

“In all consultations and dealings relating to the Mylor Peninsula, the province has grossly understated the strength of the Coast Tsimshian claim to the Mylor Peninsula, grounded on the erroneous analysis and conclusions of provincial employees who lack relevant qualifications,” the application says.

Lawyers for the Lax’Kwalaams, and the provincial and federal environment ministries did not immediately provide comment on the judicial review applications. The Metlakatla’s lawyer declined to comment.

The project to build two floating facilities off Pearse Island in northwest B.C. is huge, designed to process two-billion cubic feet of gas per day and export 12-million tonnes of LNG per year.

The project is being developed in partnership between the Nisga’a Nation, Rockies LNG Limited Partnership and Western LNG, although documents show the project’s assets will be constructed, owned and operated by wholly owned subsidiaries of Western LNG, based in Houston, Texas.

The Metlakatla First Nation claims the project will severely impact its rights and that the government failed to consider different shipping routes that could lessen impacts on sensitive fisheries areas and marine mammal habitat.

“The project application materials readily admit that the harm to northern resident killer whales and their critical habitat from noise from project-related marine shipping would go on for decades and be cumulative in nature,” the application says.

The Metlakatla claims the federal minister’s decision statement approving the project bestowed a “highly speculative potential economic benefit” to the neighbouring Nisga’a Nation, while “setting up the ‘no-win’ situation for Metlakatla.”

The Lax Kw’alaams Band’s application, filed on Oct. 15, says the project is to be located in its traditional territory, and threatens to displace its Aboriginal rights and title in “perpetuity.”

“Climate change is an existential threat to human life in Canada and around the world. Indigenous peoples, including Lax Kw’alaams, suffer disproportionate climate change effects,” its application says.

The Lax Kwa’alaams Band alleges the provincial government “fundamentally” altered its policy framework and didn’t comply with the Environmental Assessment Act and failed to “meaningfully consult” before approving the project.

The Lax Kwa’alaams Band alleges it brought up “serious concerns” about the project at the outset of the environmental assessment process, including marine harvesting rights, greenhouse gas emissions, Aboriginal rights and title and the “cumulative impacts of industrialization of a pristine area.”

Both applications say the Metlakatla First Nation and the Lax Kw’alaams Band have outstanding Aboriginal title claims for the Mylor Peninsula in B.C. Supreme Court.

The federal court applications are not the only legal challenges facing the project.

In September, two other challenges were filed in British Columbia claiming that a pipeline to supply the project had not been “substantially started,” contrary to a decision made by the provincial government back in June.

The “substantially started” assessment meant that the environmental assessment certificate approving construction of the Prince Rupert Gas Transmission line, issued in 2014, remained valid.

This report by The Canadian Press was first published Oct. 23, 2025.

Darryl Greer, The Canadian Press