As Canada’s LNG pipeline project changes hands, US and local firms entrusted with upcoming work

NW Infrastructure Limited Partnership, a joint venture between Canada’s Nisga’a Nation and Western LNG, has signed a purchase and sale agreement (PSA) to acquire a proposed gas transmission project in northern British Columbia, Canada from its previous owner, compatriot oil and gas player TC Energy.

This follows a seven-year hiatus as the Prince Rupert Gas Transmission (PRGT) project was dropped by previous developers in 2017, three years after an environmental assessment certificate was received. At the time, the project entailed a pipeline system up to 900 kilometers long. 

“We are keenly aware of our responsibility to establish a new and improved approach to linear infrastructure development in Canada and partnering with industry-leading experts will help us make PRGT the best project it can be,” said Western LNG’s CEO, Davis Thames. 

“As a firm renowned for its expertise in engineering and construction management, we are confident in Bechtel’s ability to get the job done right. From the Hoover Dam to the Chunnel to NASA’s shuttle launch pad, they have earned trust delivering complex projects that stand the test of time.” 

The partners are now proposing to amend the pipeline route by expanding the corridor before entering Nass Bay, adding a 9.4-kilometer reroute within the bay, and shortening the pipeline by terminating at the proposed Ksi Lisims LNG project on Pearse Island, rather than on Lelu Island, where it was envisaged to end in the original project route. 

As explained in the amendment application, submitted for public consultation earlier this month, this would result in the construction of approximately 100 kilometers less of marine pipe. Additionally, the re-route would bring environmental benefits as it entails fewer wetlands crossed, heritage sites affected, and smaller areas of marine environment disturbed.  

The project is envisaged to supply natural gas to Western LNG’s Ksi Lisims LNG facility which is under construction. The 12-mtpa natural gas liquefaction and marine terminal project is set to receive 1.7–2 billion cubic feet of natural gas per day and export it overseas once commercial operations start in late 2028 or 2029.

The Ksi Lisims terminal received a 40-year export license from the Canada Energy Regulator (CER) two years ago. More recently, the developer filed an application to the British Columbia (B.C.) Government for an environmental assessment certificate (EAC) and the first offtake agreement was concluded with Shell. 

The new PRGT owners intend to go through with the planned summer 2024 construction program, advance the pipeline route amendment, continue dialogue with First Nations along the route, and apply lessons learned from past projects for cost optimization and quality improvement.

Eva Clayton, President of the Nisga’a Lisims Government, noted: “PRGT is our chance as Indigenous people to develop a pipeline project in our own way, to show how it can and should be done. By working together, and with world-leading construction managers, we’re confident this project will set a new bar for environmental protection and leave a legacy of prosperity for Nations across B.C.” 

Bechtel has been selected to oversee and manage the execution of the PRGT natural gas pipeline, while B.C.-based construction company Ledcor will support the 2024 work plan. Construction activities, set to start this month, include bridge and road construction, worker housing development, clearing and grading, and establishment of laydown yards and construction offices.

“This is an exciting opportunity to showcase how major energy infrastructure can and should be developed in partnership with Indigenous communities. Together we will deliver this critical project to the highest standards of safety and environmental projection, creating jobs, supporting economic development, and setting a new benchmark for responsible energy infrastructure development in Canada,” said Paul Marsden, President of Bechtel Energy. 

The terminal on Pearse Island is situated close to another LNG project being developed in the Great White North – Kitimat LNG. Described as one of the largest energy projects in Canadian history, the project is being co-developed by a joint venture between Shell, Petronas, PetroChina, KOGAS, and Mitsubishi. The first shipment from the 14-mtpa facility is expected by mid-2025. The project recently witnessed the completion of the final weld on the first production train.