TC Energy Corporation has entered into a binding letter agreement with Nisga’a Nation and Western LNG to sell its Prince Rupert Gas Transmission Holdings and Prince Rupert Gas Transmission Limited Partnership (collectively, PRGT).

PRGT, a wholly owned subsidiary of TC Energy, is developing a natural gas pipeline project in British Columbia that would connect to a proposed liquefied natural gas (LNG) facility on Nisga’a Nation-owned land.

“This is an important agreement that will see Indigenous co-ownership and development of an integrated LNG project,” François Poirier, President and CEO of TC Energy said in a statement. 

“Enabling LNG development in British Columbia is good for Indigenous communities, our customers and supports the long-term growth of the Western Canada Sedimentary Basin and global emissions reduction through the export of responsibly produced Canadian natural gas.”

The agreement includes transition services from TC Energy to facilitate a smooth handover of the project and support development work planned for this year. The transaction is expected to close in the second quarter of 2024, subject to final agreements and customary closing conditions.

The LNG facility, called Ksi Lisims LNG, is being developed by the Nisga’a Nation, Western LNG, and Rockies LNG. It will be located on the northern tip of Pearse Island and powered by renewable hydroelectricity, aiming to be net zero-ready by 2030.

With a capacity of 12 million tonnes of LNG per year, Ksi Lisims LNG targets markets in the Pacific basin, particularly Asia, where demand for cleaner fuels is growing. The project plans to achieve net-zero greenhouse gas emissions within three years of operation by utilizing renewable energy, strong monitoring practices, and carbon offset purchases.

The approach includes exploring potential carbon capture and storage solutions alongside energy efficiency measures.