Reports of preliminary pipeline work occurring outside Nisga'a territory
Highlights
- There's been a significant uptick in construction traffic in the Kispiox Valley the last few days, according to residents. This does not necessarily mean pipeline work. However, one Gitxsan Development Corporation vehicle was stopped and questioned, and, according to reports, confirmed they are doing preliminary work for PRGT.
- LNG Canada startup date seems to keep creeping back, but in the meantime, they are flaring 24/7.
- Ksi Lisims LNG ownership continues to be inaccurately reported on by media—Nisga'a Lisims Government is not, according to robust reporting by the National Observer, an owner of the project, despite claims and insinuations made by project proponents, the province, and some journalists. If you see this reported otherwise, please contact the journalist or publication and ask them to correct it.
- IEEFA published a new report on Ksi Lisims LNG questioning its economic viability.
- CGL's credit rating affirmed as A (low).
Details
Uptick in construction traffic in Kispiox Valley
This seems to be all we know so far. Construction can't actually start until a variety of conditions are met, but the company may try to push the limits of what is and isn't "construction" over the coming months—this is common practice and you'd be surprised how far project proponents are able to push it. The more local people can monitor what's going on, the better. Please send any updates to us if you can. It is important to note the contractor.
The Gitxsan Development Corporation (GDC) is a supporter of the project, despite the opposition of many Gitxsan wilps, chiefs, and people. More on this another time. That said, GDC is unlikely to be the only contractor doing work for the project right now. If you see work trucks near the pipeline right-of-way (check out this map; we've also added downloadable .geojson and shapefiles for the right-of-way to the About page), there is a good chance they are affiliated with the project, at least in certain areas where there is not much else going on—i.e. upper Kispiox Valley.
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LNG Canada startup and flaring
Oil and gas media is very excited about LNG Canada's startup, but the actual date gets vaguer and vaguer the closer we get. There is reportedly a tanker en route to scheduled to arrive on June 29th. You can monitor shipping traffic here.
In the meantime, LNG Canada has been flaring, meaning burning off massive amounts of gas as part of its startup routine. The flare stack looks like the Eye of Sauron and is so large that the firesmoke.ca model interprets it as a wildfire:

Residents of Kitimat have been posting videos on Facebook and Youtube, many complaining about it. A new phase of flaring started yesterday that may be even larger. "We anticipate intermittent visible emissions (black smoke) from the flare." If you're in Kitimat, it might be worth investing in some independent air quality monitoring equipment that produces data independent from the government-and-industry affiliated Kitimat Airshed Group, but they do publish air quality data.
CGL's credit rating
CGL has a huge amount of construction debt from its original build. It is also borrowing money to build a new compressor station and an extension that will connect the project to the Haisla / Pembina Cedar LNG terminal. They issued $7.15 billion in bonds last year. Morningstar, a credit ratings agency, published this press release last week. The notable information comes in the rationale. The major risks facing the company are:
(1) construction risks around the Cedar expansion, (2) complexity and exposure to interest rate risk in the refinancing structure, (3) potential uncertainty around unresolved land claims with Indigenous groups, and (4) residual ramp-up risk.