British Columbia’s environmental regulator has approved Cedar LNG’s request to increase its future production capacity by 25 percent, boosting annual liquefied natural gas (LNG) output from three million to 3.75 million tonnes. The decision positions Cedar LNG, a project led by the Haisla Nation, to play a larger role in Canada’s growing LNG export sector.

Construction on the project began in 2024, with operations scheduled to commence by late 2028. Exports will ship from the Haisla Nation’s traditional territory in Kitimat, British Columbia, primarily targeting markets in Asia. The Haisla Nation owns a majority stake of 50.1 percent in Cedar LNG, while Calgary-based Pembina Pipeline Corp. holds the remaining 49.9 percent.

Cedar LNG’s increased capacity will be supported by the Coastal GasLink pipeline operated by TC Energy Corp., which transports natural gas across 670 kilometres from northeast British Columbia to Kitimat. The project’s adjustment raises its projected daily natural gas intake to approximately 500 million cubic feet, up from earlier plans for 400 million cubic feet. Cedar has estimated the capital expenditure for its export facilities at US$3.4 billion.

This expansion follows the launch of LNG Canada, the country’s first operational LNG export terminal, which began shipments from Kitimat to Asia in mid-2025. LNG Canada, led by Shell PLC, is also considering a future Phase 2 expansion that could double its capacity to as much as 30 million tonnes per year. The federal government has emphasized LNG development as part of a broader strategy to increase Canada’s energy exports and reduce economic dependency on the United States.

However, the expansion has drawn scrutiny from environmental groups including Stand.earth, the David Suzuki Foundation, and the Canadian Association of Physicians for the Environment (CAPE). These organizations have called for a halt to LNG growth on the West Coast and raised concerns about health impacts related to flaring practices at LNG Canada’s site. Flaring, the controlled burning of excess natural gas, has been identified as a significant source of air pollution in the Kitimat area, alongside emissions from Rio Tinto PLC’s aluminum smelter.

The British Columbia Environmental Assessment Office, in approving Cedar’s increased capacity on July 9, acknowledged these concerns regarding cumulative air quality but noted that Cedar anticipates the capacity increase will come from operational efficiencies rather than a rise in greenhouse gas emissions. The project plans to use electricity supplied by BC Hydro to power electric motors for the liquefaction compressors, aiming to reduce its carbon footprint.

The regulator also authorized Cedar to accommodate up to 80 workers on a floating production vessel, currently being constructed in South Korea, which will support operations starting in 2028. While the District of Kitimat expressed preference for workers to live in existing local housing to benefit the community, Cedar stated that housing personnel onboard the vessel will optimize safety and operational efficiency.

In addition to Cedar and LNG Canada, other LNG projects in B.C. include Woodfibre LNG near Squamish, expected to complete construction by late 2027, Ksi Lisims LNG at Pearse Island, currently under provincial review, and FortisBC’s Tilbury LNG expansion in Delta. With these developments, Canada aims to operate three LNG export terminals serving Asian markets by early 2029, expanding its presence alongside the United States, which has established nine LNG export facilities since 2016 and anticipates three more by 2028.

According to recent data from the International Gas Union, the United States, Qatar, and Australia are projected to remain the top global LNG exporters in 2025, while China, Japan, and South Korea lead as the primary importers of the fuel.