Canada pushes ahead with $33bn LNG expansion amid environmental, human rights concerns

Kitimat facility doubling capacity as critics say fast-track ignores past conduct of consortium partners

By LineZotpaper
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Canada’s first major liquefied natural gas export terminal, LNG Canada in Kitimat, British Columbia, has approved a US$33 billion expansion that will double production, drawing strong federal support as Ottawa seeks to diversify trade amid US tariffs. But residents and experts warn the project locks in decades of emissions and ties taxpayers to companies with records of environmental damage and alleged human rights abuses abroad.

LNG Canada, which began operations in mid-2025, is the country’s first major export facility. In late September, the consortium behind it gave the green light to a $33bn expansion that will add five new compressor stations to the Coastal GasLink pipeline and significantly increase output in the coming years.

Prime Minister Mark Carney’s government has added both LNG Canada and the proposed Ksi Lisims LNG project to its Major Projects List, promising streamlined federal support. “Canada is building big again,” Carney said at a Vancouver press conference. “One office. One point of contact. One goal: get to the right decision, rapidly and efficiently.”

But since commissioning began in late 2024, the Kitimat facility has faced technical problems. In 2025, it burned 350 million cubic metres of gas due to an integrity issue with its main flare stack, placing it among the world’s highest sources of flaring emissions. Local residents described the noise as “on a whole other level” and said the flaring has worsened air quality. One resident, speaking on condition of anonymity because the plant is a major local employer, said: “I am devastated about the changes to my home territory. I can’t always see the stars like I used to.”

Critics also point to the track records of the consortium’s members: Shell (majority shareholder), Petronas, Korea Gas, PetroChina and Mitsubishi. Shell, which also signed a deal to buy two million tonnes of LNG from Ksi Lisims, faces longstanding allegations over oil spills in Nigeria’s Niger Delta. The United Nations estimates Shell spilled more than 13 million barrels of crude in at least 7,000 incidents since 1958. “The firm has been associated with these major human rights violations and all sorts of legal cases around actual violence against communities and severe environmental devastation in Nigeria, and yet tries to act as if their operations here are somehow not the same,” said Anna Zalik, a York University professor who has studied Shell in Nigeria for two decades.

Shell declined an interview but provided a statement saying the characterisation “is not one we recognise”. The company said it is “committed to honesty, integrity and respect for people” and that its Nigerian operations involved “complex and contested issues, including large-scale oil theft, sabotage and illegal refining carried out by organized criminal gangs”.

The Coastal GasLink pipeline that supplies the project crosses Wet’suwet’en territories without the consent of the nation’s Hereditary Chiefs, sparking Indigenous-led protests and arrests in 2020. Majority owner of the pipeline is New York investment firm KKR.

Marc Lee, senior economist with the Canadian Centre for Policy Alternatives, said the trade war with the US is being used to fast-track projects at the expense of environmental protection and community impacts. “It’s all about investment,” he said. “We’re essentially promising to liquidate this resource that should be the inheritance of British Columbians for hundreds of years.”

Carney’s office declined an interview request and referred questions to the Privy Council Office, which did not respond prior to publication.

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Analysis

Why This Matters

  • The expansion locks Canada into long-term fossil fuel infrastructure at a time when global climate targets require rapid emissions reductions.
  • It signals Ottawa’s willingness to prioritise trade diversification over environmental and Indigenous concerns, particularly in response to US tariff threats.
  • The involvement of companies with controversial overseas records raises questions about corporate accountability and Canada’s regulatory oversight.

Background

Canada has abundant natural gas reserves but has long struggled to build export capacity on its Pacific coast, facing regulatory hurdles, Indigenous opposition and market uncertainty. The LNG Canada project was first proposed in 2011 and finally began construction in 2018. The recent push comes as the US under President Donald Trump has imposed tariffs on Canadian steel, lumber, aluminium and, in August, an additional $20bn in tariffs on wine, dairy and textiles. The Carney government has responded by fast-tracking infrastructure projects deemed to be of national interest through a new Major Projects Office.

Key Perspectives

Government and project proponents: The expansion is essential for economic growth, job creation and reducing dependence on the US market. They argue modern technology and regulatory oversight can minimise environmental harm. Local residents and environmental groups: The flaring problem, noise and light pollution show the costs outweigh benefits. They question why a project with such significant issues was allowed to continue operating without disclosing them to the community. Human rights and Indigenous advocates: The project and pipeline proceed without the free, prior and informed consent of Wet’suwet’en hereditary chiefs, repeating patterns of marginalisation seen in Shell’s operations abroad.

What to Watch

  • Whether federal and provincial regulators impose penalties or require fixes for the flaring issue, which could delay further expansion.
  • Legal challenges from Wet’suwet’en hereditary leaders or environmental groups that could halt construction.
  • How the trade war with the US evolves, if tariffs are lifted, the political urgency to fast-track LNG may diminish.

Sources

Checked

11 claims in this story checked against 1 source: 3 supported.

Show each claim
  1. Not in the sourcesThe project ties taxpayers to the consortium’s companies.Al Jazeera – Breaking News, World News and Video from Al Jazeera
  2. Partly supportedThe project locks in decades of emissions.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “it risks locking in multidecade, multibillion-dollar contracts with companies whose current and past ventures include human rights abuses and environmental damage.”
  3. Partly supportedThe expansion will cost US$33 billion.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “In late September, it gave the green light to a $33bn expansion which will double production in the coming years at Kitimat.”
  4. SupportedThe expansion will double production.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “In late September, it gave the green light to a $33bn expansion which will double production in the coming years at Kitimat.”
  5. Partly supportedAnna Zalik said Shell acts as if its operations in Canada are not the same as its operations in Nigeria.Al Jazeera – Breaking News, World News and Video from Al Jazeera: ““The firm has been associated with these major human rights violations and all sorts of legal cases around actual violence against communities and severe environmental devastation in Nigeria, and yet tries to act as if their operations here are somehow not the same as their operations there,” she said.”
  6. Partly supportedA resident said, “I can’t always see the stars like I used to.”Al Jazeera – Breaking News, World News and Video from Al Jazeera: ““I am devastated about the changes to my home territory,” another resident said. “I can't always see the stars like I used to from my parents' place here. My friend returned temporarily, and her asthma has been much worse.””
  7. Not in the sourcesResidents said the flaring worsened air quality.Al Jazeera – Breaking News, World News and Video from Al Jazeera: ““I can't always see the stars like I used to from my parents' place here. My friend returned temporarily, and her asthma has been much worse.””
  8. Partly supportedThe consortium behind LNG Canada gave the green light to the expansion.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “In late September, it gave the green light to a $33bn expansion which will double production in the coming years at Kitimat.”
  9. Partly supportedLNG Canada burned 350 million cubic metres of gas in 2025 because of a flare-stack issue.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “In 2025, the new liquefaction facility burned 350 million cubic metres of gas due to an issue with its main flare stack.”
  10. SupportedThe flaring placed the facility among the world’s highest sources of flaring emissions.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “a technical problem at the newly built LNG Canada facility led to the plant burning off more than 350 million cubic metres of gas that year, putting it among the world’s highest sources of flaring emissions.”
  11. SupportedThe project crosses Wet’suwet’en territories without the consent of the nation’s Hereditary Chiefs, and construction drew protests and arrests in 2020.Al Jazeera – Breaking News, World News and Video from Al Jazeera: “built by TC Energy between 2019 and 2024 across Wet’suwet’en territories without the consent of the nation’s Indigenous leaders, or Hereditary Chiefs. In 2020, construction of the 670-kilometre (420-mile) pipeline became the focal point for Indigenous-led protests, arrests and nationwide outrage.”

Zotpaper

Written by Rex Doyle on the World desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

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