A $200-million agreement between the Province of British Columbia and the Haisla Nation will fund the electrification infrastructure needed to power the Cedar LNG facility with hydroelectricity鈥攁n investment leaders say positions the project as a global benchmark for low-emission natural gas production.
鈥淏y supporting Haisla Nation to power Cedar LNG with clean B.C. electricity, we鈥檙e taking another step in building a stronger economy that鈥檚 less exposed to reckless decisions made in the White House,鈥� said Premier David Eby, speaking July 29 in Kitamaat Village.
The contribution will support construction of a new 287-kilovolt transmission line, a substation, distribution lines and nearshore electrification infrastructure. These components are essential to connecting the floating LNG terminal to the province鈥檚 power grid.
Owned 50.1 per cent by the Haisla Nation in partnership with Pembina Pipeline Corporation, the $4 billion USD project is expected to generate about 500 jobs at peak construction, with around 100 full-time roles once the facility is online.
鈥淥ur vision for Cedar LNG was always predicated on being able to source the cleanest power option to ensure our project delivers LNG with the lowest possible carbon footprint,鈥� said Haisla Nation Chief Councillor Maureen Nyce. 鈥淲e are grateful to the provincial government for supporting our Nation鈥檚 goal of sustainably advancing development in our territory on our own terms and in accordance with our values.鈥�
Cedar LNG, the world鈥檚 first Indigenous majority-owned LNG project, received all key regulatory approvals before reaching a final investment decision on June 25, 2024.
Construction began immediately after the final investment decision. The project鈥檚 floating LNG facility is currently under development overseas and is scheduled for delivery in late 2028.
Nyce said the project reflects the Nation鈥檚 constitutional rights and its long-standing commitment to environmental stewardship, economic independence and generational prosperity. 鈥淲hen Indigenous communities lead projects as owners, as is the case with Cedar LNG, we are able to ensure that these projects are developed in the most environmentally responsible manner, while generating revenues that enable us to protect our way of life and build long-term prosperity,鈥� she said.
Nyce also acknowledged the role of former Haisla chief councillor Crystal Smith, who was instrumental in shaping the project during its early phases and in building support for LNG Canada, located nearby.
The Haisla Nation has also leveraged its growing presence in the sector through HaiSea Marine, where it holds majority ownership. The company operates one of the world鈥檚 cleanest tugboat fleets鈥攃omprised of electric and hybrid vessels鈥攁nd has secured a 12-year, $500 million contract with LNG Canada. HaiSea expects to generate about 70 maritime jobs and six onshore roles through the agreement, while aiming for long-term service in the region鈥檚 channel.
Minister of Energy and Climate Solutions Adrian Dix said projects like these exemplify how industrial development can align with both reconciliation and environmental responsibility. 鈥淐edar LNG is a model for how LNG projects can be developed through innovation and collaboration with First Nations, while also creating good jobs and addressing climate change,鈥� he said.
Asked whether this type of project is replicable or a one-off, Dix was firm. 鈥淭he only way to move quickly is to move with First Nations,鈥� he said, noting that the province is pushing companies to establish agreements with Indigenous communities early in the planning process. "This is far from a one-off.鈥�
Both Dix and Eby also pointed to increasing instability in the U.S. energy policy landscape as a key motivator for Canada to expand its LNG capacity. Dix criticized the current U.S. administration for urging clean energy companies to exit, saying B.C. offers a more stable environment. Eby added that the President鈥檚 behaviour has created uncertainty for global buyers.
鈥淚f you鈥檙e a government in Asia looking for reliable energy sources with a partner you can rely on without tariffs...nobody would be looking at the United States,鈥� Eby said. 鈥淐anada is a reliable partner with a direct route to Asia delivering the lowest carbon LNG in the world. Canada will win this race and diversify our markets with our Canadian values鈥攖hat鈥檚 on display right here with Cedar LNG.鈥�
Meanwhile, environmental advocates and the B.C. Green Party are criticizing the investment, saying it contradicts B.C.鈥檚 emissions targets and climate commitments.
鈥淭his prolongs our dependence on fossil fuels,鈥� said Green MLA and interim leader Jeremy Valeriote, who also accused the province of greenwashing LNG as clean energy without evidence.
Shannon McPhail of the Skeena Watershed Conservation Coalition added the project wouldn't need public money if LNG were economically viable. 鈥淲e鈥檙e racing to the bottom,鈥� she said, citing delays in related infrastructure.
Critics also pointed to weakened net-zero requirements for LNG facilities and urged the province to shift funding toward sustainable economic alternatives instead of subsidizing fossil fuel expansion.
In response to ongoing criticisms, Dix emphasized Cedar LNG鈥檚 emissions profile as a distinguishing feature. 鈥淭his is the cleanest in the world, the lowest-emission LNG鈥� it鈥檚 not just replacing coal, it鈥檚 replacing all other LNG,鈥� he said. 鈥淲hat the Haisla Nation has done is exceptional.鈥�
The provincial agreement follows a $200-million federal commitment announced in March to support the Cedar LNG project. That funding forms part of Canada鈥檚 broader strategy to diversify export opportunities, advance Indigenous economic reconciliation and ensure major projects align with national climate and environmental priorities.
