The Canadian federal government has designated the massive Ksi Lisims Liquefied Natural Gas (LNG) facility and its supply pipeline as a nation-building project, headlining a $56-billion package of energy and mining developments unveiled Thursday. 

This move fast-tracks the proposed LNG export terminal in British Columbia's northwest, while omitting a new oil pipeline from the priority list.

Prime Minister Mark Carney confirmed the project's referral to Ottawa’s new Major Projects Office, emphasizing LNG's role in the global energy transition. 

“LNG is an essential fuel for the energy transition,” Carney said, predicting it could help Canada build new trade relationships, especially in Asia, where global demand is forecast to rise by 60% by 2040. 

Canada, home to the world's fourth-largest natural gas reserves, aims to supply up to 100 million tons annually of new LNG exports.

The Ksi Lisims LNG project, which would become the country’s second-largest terminal, involves constructing the 800-kilometer Prince Rupert Gas Transmission (PRGT) pipeline through northern B.C. The pipeline would move gas from the B.C.-Alberta Montney play to a floating terminal on Nisga’a Nation territory near Prince Rupert.

The joint venture—between the Nisga’a Nation, developer Western LNG, and gas producers Rockies LNG—has already secured major regulatory approvals. 

Western LNG CEO Davis Thames called the federal designation a “validation” of their approach to climate and Indigenous interests, saying a final investment decision is likely early next year. 

Carney noted the facility is expected to run entirely on hydroelectricity, making it potentially the world's lowest-carbon LNG producer.

Despite this, the project faces opposition, including Federal Court challenges from the neighboring Lax Kw’alaams Band and Metlakatla First Nations. The Nisga’a Nation, a project partner, said it is working with other Indigenous communities to finalize agreements, including equity stakes in the pipeline.

The announcement comes as the federal government is under pressure from Alberta to give similar priority to a new oil pipeline to the West Coast. Alberta Premier Danielle Smith’s office confirmed Wednesday that "sensitive" negotiations are ongoing with Ottawa. 

Smith's government is seeking a memorandum of understanding that would include the removal or overhaul of federal laws hindering investment, alongside an agreement to work toward approval of a new bitumen export pipeline to Asian markets.

Other developments announced Thursday included three critical minerals projects in Ontario, Quebec, and New Brunswick, as well as major transmission projects in B.C., Nunavut, and the Yukon.