VANCOUVER, British Columbia (CN) – Two members of a British Columbia First Nation in northern Britain say their community was misled about the benefits they would receive from a pair of controversial natural gas projects.
The Prince Rupert Gas Transmission Pipeline (PRGT) project has had several controversies in recent years, including within the Nisg̱a’a Nation.
The pipeline is expected to transport more than two billion cubic meters of liquefied natural gas 800 to 900 kilometers daily from northeastern British Columbia to the similarly proposed Ksi Lisims LNG terminal near Prince Rupert, on the province’s north coast.
or new lawsuit adds to this controversy, as two members of the Nisg̱a’a Nation claim that the Nisg̱a’a Lisims government’s decision to purchase a stake in the PRGT project was not in the community’s best interest.
The Nisg̱a’a Lisims Government partnered with Western LNG LLC to form the NW Infrastructure Limited Partnership, which purchased the project from TC Energy Corporation in June 2024.
This agreement came with promises of long-term economic benefits for the Nisg̱a’a community. But Cecil Mercer and Stephen Nyce say their community was misled about those benefits.
The plaintiffs argue that the feasibility of the projects depends on the export of LNG at a time when demand is declining.
“If demand for LNG in target markets continues to decline due to price volatility, project assets are at risk of being stranded, meaning the associated infrastructure will become obsolete before the end of its operational life due to the low-carbon energy transition,” Mercer and Nyce said in legal filings.
At the same time, the costs associated with the projects have increased. The PRGT line was valued in 2014 at CA$5 billion, according to the lawsuit, which noted projections are $10 billion or more today.
Although the Ksi Lisims project would be fully owned by Western LNG, the Nisg̱a’a Lisims government is listed as a “proposer,” according to the lawsuit, and would receive some revenue from the project, which is expected to cost another $10 billion to $20 billion.
“The KLNG Project’s dependence on the PRGT Pipeline compounds the financial risk to the Nisg̱a’a Nation because (the Nisg̱a’a Lisims Government) will rely on revenues from the KLNG Project as well as the PRGT Pipeline,” the plaintiffs said in court documents filed March 13.
Although the government-owned electric utility, BC Hydro, recently signed an agreement to supply clean energy to the projects, Mercer and Nyce said this is not a done deal, as it would rely on the completion of a major transmission line.
If that doesn’t happen, the plaintiffs said the project may need to rely on gas turbines, adding another $2 billion in capital costs and releasing 1.8 million tons of emissions a year.
The project also faces significant challenges, as indigenous communities and environmental groups oppose the project, which plaintiffs said could jeopardize the project’s financial viability.
At the same time, opponents say the project poses serious risks.
In their lawsuit, Mercer and Nyce point out that the road crosses several salmon rivers as well as areas of cultural significance to the Nisg̱a’a nation, including the Nass Valley lava beds.
Environmental groups have opposed PRGT and Ksi Lisims, saying they are part of an expansion of fossil fuels at a time when governments need to phase it out in favor of green energy.
The provincial and federal governments, however, have given support to both projects, with the federal government adding Ksi Lisims to its list of accelerated major projects late last year, suggesting it would be a boost to the provincial and national economy.
The PRGT pipeline project is already the subject of a lawsuit by another First Nation and two non-profit organizations.
The Skeena Watershed Conservation Coalition, the Kispiox Valley Community Center Association and the Kispiox Band council argued that an environmental permit had expired before substantive work on the project could begin.
British Columbia’s Energy Regulator, however, disagreed and let the project go ahead without the need for a new environmental permit. And the Supreme Court of British Columbia agreed last August, according to northeastern British Columbia publication, Energetic City.
In 2024, several Nisg̱a’a communities voiced their opposition to the pipeline, setting up roadblocks to prevent vehicles from entering construction sites. according to environmental magazine The Narwhal.
Those blockades follow similar major actions against the Coast GasLink pipeline project, which led Wet’suwet’en chiefs and supporters to block construction of that pipeline, along with solidarity protests in Vancouver and elsewhere.
Mercer and Nyce say that by teaming up with Western LNG to buy the pipeline project, the Nisg̱a’a Lisims government breached its fiduciary obligations to members of its community.
The claims have not been tested in court, and the Government of Nisg̱a’a Lisims, Western LNG and TC Energy did not respond to a request for comment.
Courthouse News reporter Dustin Godfrey is based in Vancouver, Canada.
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