BC Hydro signs MOU with Ksi Lisims LNG for north coast power supply

PRINCE GEORGE, B.C. — BC Hydro has signed a memorandum of understanding (MOU) with Ksi Lisims LNG to advance plans for supplying clean electricity to the proposed floating LNG facility on Nisga’a Treaty lands.

While legally non-binding, an MOU outlines the intentions and expectations of each party in a project, usually before a formal contract is drafted.

The agreement, announced on January 20th with the Ministry of Energy and Climate Solutions, outlines the steps required for BC Hydro to deliver up to 600 megawatts of electricity to the Ksi Lisims LNG project and supports development of the North Coast Transmission Line (NCTL).

Next steps include awarding early construction contracts for the first phase of the project, securing permits and regulatory approvals and a final investment decision by BC Hydro’s board of directors.

The Ksi Lisims LNG project is a proposed $10 billion floating LNG export facility planned for waters off B.C.’s northwest coast in Nisga’a Nation territory. 

The facility is designed to process natural gas delivered by the Prince Rupert Gas Transmission pipeline, currently under construction, and export up to 12 million tonnes of LNG per year.

Ksi Lisims received environmental approvals from the provincial and federal governments in September, but still awaits a final investment decision.

“By taking the next step in securing Ksi Lisims LNG as a major customer and moving forward with the North Coast Transmission Line, we’re delivering the clean power needed to fuel new industries, strengthen communities and create thousands of good-paying jobs,” said Adrian Dix, energy and climate solutions minister.

In November, both the LNG project and the NCTL were identified by the federal government’s Major Projects Office (MPO) as projects to be fast-tracked.

“This memorandum of understanding is a critical step to connecting Ksi Lisims LNG to BC Hydro’s clean electricity grid,” said Eva Clayton, president of the Nisga’a Nation. 

“It gives us the clarity that we need to continue to advance our project toward producing the world’s lowest emission LNG, while reflecting the Nisga’a Nation’s commitment to development that protects our environment and creates lasting benefits for the Nisga’a Nation and other Nations and communities in the region.”

NCTL will see hundreds of kilometres of new electrical infrastructure installed from Prince George to Terrace and up north to Aiyansh and Bob Quinn Lake.

BC Hydro says the expansion will more than double electricity capacity in the region.

“The North Coast Transmission Line is critical to B.C.’s economic future, and today’s MOU with Ksi Lisims LNG underscores that importance,” said BC Hydro president and chief executive Charlotte Mitha. 

“This investment will deliver the clean electricity needed to power major industries, expand trade and strengthen communities across the north coast.”

Once completed, NCTL is expected to help power projects creating approximately 9,700 direct full-time jobs, contribute nearly $10 billion per year to provincial GDP and generate about $950 million annually in public revenues for the province and its municipal governments. 

It is also expected to prevent the release of two to three million tonnes of carbon emissions each year. 

Construction is expected to begin in summer 2026, with phased completion targeted for 2030.