Ottawa has given approval for an Indigenous-led liquefied natural gas (LNG) project in British Columbia to go ahead.

Federal Environment Minister Steven Guilbeault said Tuesday that the Cedar LNG project can proceed, after the province granted an environmental assessment certificate to the proposed facility near Kitimat, B.C. 

Cedar LNG Partners LP, a Haisla Nation-led partnership with Pembina Pipeline Corporation, are behind the proposal that includes a floating LNG facility and marine export terminal. It will have storage capacity for up to 250,000 cubic metres of LNG.

The company said it has received a permit from B.C. Energy Regulator for a pipeline that will connect to the larger Coastal GasLink pipeline. Commercial operations are expected to begin in 2027.

Guilbeault’s approval means the company can now work on obtaining permits and authorizations from other federal departments.

A provincial government news release said Cedar LNG will be one of the lowest-emitting LNG facilities in the world.

There are 250 conditions that come with the its approval, including requirements to reach net-zero greenhouse gas emissions by 2050 and develop a plan to mitigate marine shipping impacts in the area.

Crystal Smith, chief councillor for Haisla Nation, said in a written statement that the environmental assessment certificate “marks a significant milestone for the Cedar LNG project and the Haisla Nation’s journey towards economic self-determination.”