60 Orgs Reject Public Subsidies for LNG

Press Release

June 03, 2026

Toronto | Treaty Lands and Territory of the Mississaugas of the Credit First Nation, and the traditional territory of the Anishinaabeg, the Haudenosaunee, and the Wendat – A coalition of national and international organisations representing over 1.6 million Canadians has sent letters to the Canada Growth Fund, Export Development Canada (EDC), and Canada Infrastructure Bank amid rumours of taxpayer funding for the controversial Ksi Lisims project.

The letters can be viewed here: Canada Infrastructure Bank, Export Development Canada and the Canada Growth Fund.

The coordinated push comes amid growing concerns that these institutions are considering directing public funds toward LNG infrastructure, including the foreign-owned, foreign-built Ksi Lisims floating LNG terminal in British Columbia. Public financing for LNG would contradict Canada’s climate commitments, violate Indigenous rights, and expose taxpayers to significant financial risk.

“When private investors refuse to finance a project for nearly a decade, that’s not a gap for public money to fill — it’s a warning sign,” said Alex Walker, Energy Analytics Program Manager at Environmental Defence Canada. “Canadian public financiers have clear mandates detailing the types of projects they should support. Ksi Lisims misses the mark across the board. It isn’t a Canadian export success story, or a part of a burgeoning global industry. It’s a legally contested and environmentally destructive project.“

Background

Ksi Lisims has failed to attract private financing for nearly a decade and has secured gas buyers for only one-third of its projected capacity
Even last week’s announcement with the German company SEFE is a preliminary Heads of Agreement Deal, rather than a finalised purchase agreement. If this deal does get signed, it is for just one twelfth of the total annual capacity of the Ksi Lisims facility.
Multiple Indigenous communities have not consented to the project and have filed legal challenges
Canada’s only operating LNG facility is currently flaring 45 times beyond its permitted limits, releasing more methane pollution than any other facility in the world
Ksi Lisims would produce upstream emissions of at minimum 3-4 million tonnes of CO2 equivalent per year, making it harder for Canada to meet its climate commitments
The project is wholly owned by Texas-based Western LNG, with the floating terminal to be constructed in South Korea, meaning most economic benefits would flow outside Canada
On 21st May 2026, Export Development Canada added LNG Canada to its ‘Category A’ page. A project is classified as a Category A when it is likely to have significant adverse environmental effects that are sensitive, diverse, or unprecedented. This addition indicates that within 60 days. Under EDC’s transparency policy, these projects require public notification at least sixty (60) calendar days prior to EDC signing the transaction.
LNG Canada should not be considered for financing. The existing facility is currently flaring an average of 40 times more gas than its permits allow. Every flaring event releases a toxic mix of air pollutants, including particulate matter, black carbon, nitrogen and sulphur oxides, and volatile organic compounds (VOCs), including benzene. The problem could take three to five years to fix.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Midhat Moini, Environmental Defence, media@environmentaldefence.ca

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