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British Columbia’s Energy Minister Adrian Dix says an agreement between BC Hydro and the Nisga’a First Nation will help power a planned floating LNG terminal in northwestern B.C. across the finish line.
Dix said the agreement, marked by the signing of a memorandum of understanding in Prince George, B.C., on Tuesday, will see the North Coast Transmission Line supply up to 600 megawatts to what proponents say will be Canada’s second-largest LNG facility.
Construction of the line is expected to start this summer.
The Ksi Lisims LNG project planned for Nisga’a Treaty territory on Pearse Island north of Prince Rupert is a proposed 12-million-tonne-per-year, floating liquefied natural gas facility, which received environmental approvals from the provincial and federal governments in September.
BC Hydro said in a statement that if the Ksi Lisims LNG project receives its final go-ahead, it would be the first major project on B.C.’s northern coast to connect to the line, with full electrification expected for 2032, following the line’s completion.
But Ksi Lisims LNG still awaits a final investment decision, and Dix said that decision would not be possible if government had not been investing in infrastructure projects like the North Coast Transmission Line to supply clean electricity.
“(It’s) a necessary step,” Dix said of the North Coast Transmission Line, adding that other factors will also shape the final investment decision. “Once operational, Ksi Lisims LNG is expected to generate $30 billion in investment, create thousands of skilled careers and strengthen Canada’s position as a global LNG exporter,” he added.
Dix said it was the role of government to build infrastructure, adding that the announcement would help facilitate private sector investment, because investors could see a plan in front of them.
“They’ll see a transmission line and there will be a commitment to provide adequate electricity,” Dix said.
The first two phases of the North Coast Transmission Line would twin an existing power line running 450 kilometres from Prince George and Terrace, while the proposed third phase would create new transmission infrastructure, running 350 kilometres north of Terrace to Aiyanish and Quinn Lake in northwestern B.C.
BC Hydro said the project would more than double the existing electricity capacity in the region, and government last fall passed legislation to speed up the project.
Both the North Coast Transmission Line and Ksi Lisims LNG are on the federal government’s list of major projects of national importance, and Dix said the transmission line would also help B.C. open up the resource-rich region of northwestern B.C. known as the Golden Triangle.
Dix said the North Coast Transmission Line is not a sufficient step to get various projects in the region underway. “But it is a necessary step for these projects,” he said.
There was a ceremony for the signing of a memorandum of understanding at the annual BC Natural Resources Forum. Signatories included Dix; Eva Clayton, president of the Nisga’a Lisims Nation Government; and Charlotte Mitha, BC Hydro’s president and chief executive officer.
Mitha said Ksi Lisims’ commitment is significant, but other customers are also lining up for access to the expanded line.
“The North Coast is one of the fastest growing regions in the province,” she said.
BC Hydro did not release details of the MOU, including financial terms, citing confidential customer information.
But the Crown corporation said in its statement that Ksi Lisims, as well as other prospective customers, will be subject to existing tariffs and supplements related to the North Coast Transmission Line.
“As such Ksi Lisims LNG is responsible for paying for all infrastructure from its point of interconnection and posting security for any system reinforcements,” it reads.
Ksi Lisims LNG is being developed in partnership between the Nisga’a Nation, Rockies LNG Ltd. Partnership and Western LNG. But documents show the project’s assets will be constructed, owned and operated by wholly owned subsidiaries of Western LNG, based in Houston, Texas.
Tuesday’s announcement comes after Reuters reported that oil giant Shell and Japanese conglomerate Mitsubishi were exploring options to sell their stakes in the $40-billion LNG Canada project in Kitimat.
The first phase of the project has been operating since June, and the second phase aims to double production of LNG slated for shipment to Asia. If it goes ahead, it will be the second-largest liquefied natural gas facility in the world.
Dix said the report was “not significant for the future of these projects.”
He said both the government and LNG Canada remained optimistic about the project, because of its location, proximity to market and price, among other factors.
“This is a fantastic project, and it will be up to the investors, ultimately, to make the decision,” he said. “But we are very positive.”
LNG Canada Phase 2 is also on the federal government’s list of major projects of national importance. The other B.C. project on the list is the expansion of the Red Chris gold and copper mine in B.C.’s far north.
This report by The Canadian Press was first published Jan. 20, 2026.
Wolfgang Depner, The Canadian Press
