Nisga'a Nation members allege 'heightened financial risk' of B.C. LNG projects

Nisga'a Nation President Eva Clayton speaks during a Ksi Lisims LNG announcement of an environmental assessment certificate from the Government of British Columbia in Vancouver, on Tuesday, Sept. 16, 2025. ( Ethan Cairns / The Canadian Press)

VANCOUVER — Two members of the Nisga’a Nation have filed a lawsuit in B.C. Supreme Court alleging the First Nation failed to adequately consult its citizens before partnering with Western LNG on the development of the Prince Rupert Gas Transmission Project.

Cecil Mercer and Stephen Nyce say in their lawsuit that the pipeline project is interconnected with the Ksi Lisims floating natural-gas facility and marine export terminal near Prince Rupert, B.C., which has been dubbed a nation-building project by the federal Liberal government.

The lawsuit says the projects “rely on the export of LNG,” at a time of declining demand in target markets, and it argues infrastructure built to facilitate LNG exports could become obsolete as countries transition to low-carbon energy.

The lawsuit says the pipeline’s cost was first estimated to be $5 billion in 2014, but has since ballooned to between $10 billion and $12 billion.

Mercer and Nyce’s lawsuit, which contains allegations not tested in court, says the ownership structure of the pipeline creates financial risk for the Nisga’a Nation, and they claim the Nisga’a Lisims Government was not financially prudent when partnering with Western LNG.

The lawsuit also names TC Energy Corp., Western LNG and the B.C. government as defendants, none of which have filed responses in court to the lawsuit filed in Vancouver last week.

The Lax Kw’alaams Band and the Metlakatla First Nation last year went to Federal Court seeking judicial review of the LNG project, alleging the federal environment minister ignored their concerns about adverse effects.

British Columbia’s Energy Minister Adrian Dix said in January that a deal between BC Hydro and the Nisga’a Nation will help power the export terminal, with the North Coast transmission line set to supply up to 600 megawatts to the Ksi Lisims LNG facility.

Prime Minister Mark Carney last November added the transmission line and the LNG facility to his government’s list of “nation-building projects,” calling them crucial to Canada’s clean-energy future and a potential source of thousands of jobs and billions in investment.

This report by Darryl Greer of The Canadian Press was first published March 19, 2026.