LNG Canada has presented five First Nations in northwestern British Columbia with a unique opportunity to acquire a substantial ownership stake in the proposed expansion of its liquefied natural gas (LNG) facility in Kitimat. This significant agreement, unveiled on Tuesday, allows these Nations the option to invest up to $1 billion towards the purchase of a key component for the expansion: a large LNG storage tank.
The partnership, formalized under the name MNT Investments LP, will see LNG Canada lease back a critical part of the plant’s operational infrastructure for the duration of the project’s lifecycle. This innovative structure aims to provide a pathway for Indigenous communities to gain equity in the Phase-2 expansion, potentially representing one of the most significant Indigenous ownership stakes in a major Canadian infrastructure project to date.
A New Era of Indigenous Partnership
Chris Cooper, CEO of LNG Canada, described the arrangement as a creative approach enabling First Nations to secure an equity position in the Phase-2 expansion. He emphasized that this deal moves beyond traditional benefits like jobs, training, and procurement, offering long-term ownership and value creation on a global scale. Cooper stated, “This agreement recognizes that Indigenous nations should have the opportunity to participate in major investments like Phase-2, not only through jobs, training, procurement and community benefits, but also through long-term ownership and value creation on a global scale.”
Maureen Nyce, Chief Councillor of the Haisla First Nation, whose traditional territory hosts the project, called the agreement a “defining point” in her Nation’s 15-year relationship with LNG Canada. She believes it will foster “generational prosperity for the Haisla Nation and neighbouring Nations.”
In addition to the Haisla First Nation, the MNT partnership includes the Gitga’at, Gitxaała, Kitselas, and Kitsumkalum Nations. Representatives from each expressed enthusiasm for the deal during the announcement.
“Many hands, each doing a lot of heavy lifting, ensure this partnership will deliver benefits to the region and all involved for many generations,” remarked Gitga’at Chief Councillor Arnold Clifton.
Predictable Benefits and Strategic Involvement
Aaron Sinclair, president of MNT partnership, highlighted the potential for recurring revenue streams within the deal that are insulated from commodity price fluctuations. This structure, he explained, offers “durable, predictable benefits for current and future generations, and a seat at the table for the life of the project.”
Sinclair noted that the agreement was the culmination of three years of diligent work, during which LNG Canada actively engaged with the Nations to understand how commercial participation could be structured for Phase-2. “This transaction demonstrates that First Nations can be sophisticated commercial participants capable of advancing major projects in partnerships on their own,” Sinclair added.
The Indigenous industry group, First Nations Natural Gas Alliance, also lauded the agreement. CEO Karen Ogen hailed it as a prime example of “what Indigenous LNG looks like,” asserting that “Ownership changes everything.” She elaborated on the profound impact of equity, stating, “Jobs, training, procurement and community benefits matter, and they always will. Equity means a seat at the table for generations, revenue that funds our schools, our elders and our languages, and a say in the decisions that affect our lands and waters.”
Project Context and Future Outlook
This landmark deal arrives at a crucial juncture for the proposed Phase-2 expansion. LNG Canada’s joint-venture partners are currently deliberating a final investment decision for the multi-billion-dollar undertaking, which the company anticipates by the end of the current year.
LNG Canada is a consortium comprising energy giant Shell, Malaysia’s state-owned Petronas, PetroChina, Japan’s Mitsubishi, and South Korea’s Kogas. The initial phase of the project, a substantial $40 billion investment, includes a natural gas liquefaction plant with a capacity of 14 million tonnes per year and the 670 km Coastal GasLink pipeline. Operations for this initial phase commenced in June 2025.
The envisioned Phase-2 expansion would introduce two additional production units, known as “trains” in the industry, along with another supercooled storage tank. This expansion has the potential to more than double the facility’s production capacity, reaching an estimated 30 million tonnes of LNG annually.
Both British Columbia Premier David Eby and Prime Minister Mark Carney have identified the expansion as a critical component of their strategies to diversify Canada’s international trade, particularly by reducing reliance on the U.S. market. Carney’s broader objective is to double Canada’s non-U.S. trade by 2035.
Paul Hagel, a spokesperson for LNG Canada, indicated that the agreement with MNT Investments is expected to “improve the economics and competitiveness of Phase-2, creating a stronger business case for potential (joint venture partnership) investment by the end of the year.”
Sinclair confirmed that financing for MNT Investments’ contribution is contingent upon the approval of the final investment decision and will be finalized concurrently. MNT is actively seeking financing, exploring options that include Indigenous loan guarantee programs. He anticipates this financing will be structured on a “non-recourse basis,” supported by the long-term revenue generated from the leaseback arrangement with LNG Canada.
The new storage tank would mirror the existing facility on site, which stands at 56 meters tall with a diameter of 92 meters – comparable to a 16- to 19-storey building. This existing tank is already recognized as Canada’s largest LNG storage tank and one of the most significant globally.
Lingering Opposition
Despite this significant partnership, the proposed Phase-2 expansion continues to face opposition from certain First Nation groups. Hereditary leadership within the Wet’suwet’en First Nation, located in B.C.’s Central Interior, has stated that the development represents a “continuing violation of Wet’suwet’en rights and title,” according to Na’moks, a hereditary chief. A joint letter from the Wet’suwet’en hereditary chiefs and the Union of B.C. Indian Chiefs, sent to Canadian pension funds and Export Development Canada, warned that the Phase-2 expansion “will be met with fierce opposition.”
