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4 min read

PRGT Construction Could Begin August 7th; Gas through CGL; Flaring Continues

Highlights

  • PRGT submitted six month start work notices to the BC Energy Regulator on February 14th meaning work could begin outside Nisga'a territory as early as August 7th (some caveats on this below)
  • LNG Canada has now shipped four tankers out, but seemingly remains a long way off from regular operation (which would mean a tanker every other day)
  • Gas began flowing through Coastal GasLink consistently only in July (not before). Flows remain less than 10% of planned phase one capacity
  • LNG Canada has announced a new round of flaring as of July 19th, which local residents have described as "constant daylight, window-shaking, rumbling"

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Details

PRGT Start Work Notices

We have learned that PRGT submitted six month start work notices for all pipeline sections except Section 1 and Section 5B (the section they started last year on Nisga'a territory) on February 14th, 2025. That was prior to the substantial start designation, which means that they notified the BC Energy Regulator (BCER) they would be building a project that had an expired permit—seemingly not an issue under this regulatory regime.

This does not necessarily mean they will start construction on August 7th. They are still subject to a condition that the BCER has applied to their permits which requires any gas pipeline project to have an associated terminal that has reached Final Investment Decision or FID. Without FID, the BCER won't allow them to begin work—though of course, it's unlikely they would want to begin work without an FID themselves as they could just be pouring money down the drain. The permits also require that a Cumulative Effects Assessment be conducted for each construction permit, a task that apparently falls on the BCER, not the proponent. It is unlikely that this will have any impact on whether the project moves forward, though it is a bureaucratic lever to keep in mind for those pursuing legal action against the project.

It is possible that financing for both projects is already fully lined up. An industry news outlet reported this in March: "According to industry sources on Tuesday, four energy firms – Italy’s Eni S.p.A, US-based Delfin LNG, Canada’s Western LNG and Norway’s Golar LNG – are set to finalize FLNG construction contracts with Samsung Heavy soon." This may have just been industry optimism, but it could also be an indicator that Western has financing for the project lined up and is just waiting for approval before announcing an FID and moving forward.

In short, this news means there is a chance construction could start anywhere on the pipeline route in the middle of next month. But it is unlikely it would start without there first being news about Ksi Lisims LNG's approval and investment decisions regarding both projects.

Four tankers have left LNG Canada for Asia with gas now, but despite the flurry of news, this is far from full operation. Up until July, there was effectively no gas flowing through Coastal GasLink, though that has now changed.

Flows through Coastal GasLink pipeline so far this year. Far from "operational," but gas is now flowing through the pipe somewhat consistently.

Coastal GasLink started operating more consistently in July, with daily flows, but continues to operate at less than 10% of capacity (2.1 billion cubic feet per day is its planned phase one capacity). This graph was generated using a method suggested by a Tourmaline employee on Twitter. Others are using a different methodology (Willow Creek rather than Sunset Creek/West) and at this time we don't feel confident to comment on which is more accurate or even if they diverge. As always, feel free to reach out if you have knowledge or access to data.

LNG Canada announced a new round of flaring as of July 19th. The Narwhal has reported on the flaring, including a few quotes. According to one resident, it sounds "like a rocketship" more than 10km away. According to another, “We experience constant daylight, window-shaking, rumbling...Now my family and my animals are having breathing problems. I cannot sit outside as it smells of burnt plastic. The sound has kept me awake for three days, even with earplugs.”

The emailed version of this newsletter contained a mistake in the highlights, reporting two tankers per day instead of one tanker every two days. It also reported the potential start date as August 15th based on an assumption of how the BCER interprets "six months." That has been corrected to August 7th.

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PRGT News