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    Ksi Lisims LNG partners to purchase PRGT project


But 900-km pipeline could still face challenges over its lack of federal environmental oversight. [Image credit: Ksi Lisims LNG]

by: Dale Lunan

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Ksi Lisims LNG partners to purchase PRGT project

BC’s Nisga’a Nation and Houston-based Western LNG, two of three partners in the proposed Ksi Lisims LNG project in northern BC, said March 14 they have entered into a binding agreement to acquire the Prince Rupert Gas Transmission (PRGT) pipeline project from TC Energy.

Rockies LNG, a group of western Canadian natural gas producers and the third partner in the 12mn tonnes/year Ksi Lisims LNG project, did not join in the acquisition.

PRGT is a wholly-owned subsidiary of TC Energy and was originally developed to deliver natural gas to the now-defunct Pacific Northwest LNG project proposed by Malaysia’s PETRONAS. It has a BC Environmental Assessment Certificate (EAC) that is valid until November this year.

But it faces a potential regulatory challenge from Michael Sawyer, an environmental consultant who has attempted since the PRGT was part of the Pacific Northwest LNG project to have the pipeline submitted to a federal environmental review.

“Today is a historic day for the Nisga’a Nation and represents a sea change in major industrial development in this country,” said Eva Clayton, president of the Nisga’a Lisims government. “In taking an equal ownership role in this pipeline, we are signalling a new era for indigenous participation in the Canadian economy.”

As part of the agreement with Nisga’a Nation and Western LNG, TC Energy has committed to provide transition services, on a reimbursable basis, to facilitate the transition of the pipeline project and support development work planned for this year.

TC Energy said initial proceeds from the sale of PRGT “were not expected to be material” although there was the potential to receive additional payments “contingent upon the project achieving final investment decision and commercial operation.”

“We want to acknowledge TC Energy’s efforts developing the project to this point,” said Davis Thames, CEO of Western LNG. “PRGT is fully engineered, permitted and ready to construct. Our collaboration with TC Energy has given us the benefit of their team’s experience and insight.”

Nisga’a Nation and Western LNG intend to enter into an agreement with an “internationally respected” construction manager to build the pipeline. 

Subject to the execution of definitive agreements and customary closing conditions, the transaction is expected to close in the second quarter of 2024.