Case Study: Haisla Nation's Path to LNG Leadership and Prosperity
- IEM
- Nov 23
- 12 min read
Updated: Nov 23
The Haisla Nation has emerged as a national leader in LNG development, transforming from a host community to a majority owner, contractor, and strategic investor in some of Canada’s most significant energy projects. From early participation in LNG Canada, to securing pipeline capacity and equity that enabled the creation of Cedar LNG, and now acquiring the former Kitimat LNG assets, the Haisla have crafted a bold, long-term LNG strategy rooted in ownership, economic self-determination, and environmental stewardship. This case study explores how strategic negotiation, community unity, and leveraging industry partnerships have positioned the Haisla Nation at the center of Canada’s LNG industry.
Overview of Haisla Territory and LNG Projects
The Haisla Nation is an Indigenous community on British Columbia’s northwest coast, centered around Kitamaat Village near the town of Kitimat. This strategic coastal territory has become ground zero for Canada’s nascent liquefied natural gas (LNG) industry. LNG Canada, a Shell-led export terminal, and Cedar LNG, a new floating LNG project led by the Haisla, are both located on Haisla’s traditional territory. The former Kitimat LNG proposal at Bish Cove also lies within Haisla lands. Together, these projects have positioned the Haisla Nation as a national leader in LNG development.
Haisla leaders have actively engaged with LNG developers from the start. They negotiated formal benefit agreements and partnerships to ensure Haisla territory would not just host LNG projects, but that the Nation would participate meaningfully in ownership, services, and economic gains. The result is an unprecedented level of Indigenous ownership and influence in major energy infrastructure on their lands. Below, we examine how the Haisla’s strategic decisions have created a template for Indigenous-driven energy development.
Strategic Timeline: From Early Negotiations to LNG Shipments
2013 – Laying the Groundwork: Global energy companies proposed LNG export terminals in the Kitimat area, prompting early engagement with the Haisla. Shell and its partners began consultations with the Haisla Nation in 2013 to secure support for the project that would become LNG Canada. Community concerns about environmental impacts were addressed through dialogue, and Haisla leaders recognized the opportunity. Many in the Nation felt LNG development was coming “whether we join or get left behind,” as one leader put it[1]. This forward-looking stance set the stage for Haisla to bargain not just for impact mitigation, but for a stake in the value chain.
2018 – Securing Pipeline Capacity: A major turning point came in fall 2018. As part of a benefits agreement tied to LNG Canada’s Final Investment Decision that year, the Haisla negotiated a unique provision: 400 million cubic feet per day of reserved capacity on the Coastal GasLink pipeline. Coastal GasLink is the 670 km pipeline built to supply natural gas to LNG Canada. Rather than only accepting one-time payments, Haisla negotiators pushed for this long-term strategic asset. It was an unprecedented move that gave the Nation guaranteed gas transport for their own LNG facility. With pipeline access secured, Haisla leaders had effectively created the pre-conditions to develop their LNG project on their terms.
2018–2019 – Early Partnerships and JVs: Around the same time, the Haisla Nation entered joint ventures to build local capacity and capture project contracts. In October 2018, Haisla partnered with global heavy-lift company Mammoet to form Mammoet-Haisla JV. This Kitimat-based partnership was soon awarded contracts by LNG Canada’s prime contractors (JGC-Fluor JV) to handle all oversized module transport and heavy lifts for the terminal. Similarly in August 2019, the Haisla joined with Seaspan Marine to launch HaiSea Marine, a partnership to provide tugboat and escort services for LNG Canada. LNG Canada awarded HaiSea a 12-year, C$500 million contract to build and operate a fleet of tugs for docking LNG carriers at Kitimat. The HaiSea fleet which includes Canada’s first electric harbour tugs will employ ~70 mariners (with Haisla members trained by Seaspan) and 6 onshore staff. These early joint ventures ensured Haisla members and businesses gained skills, jobs, and revenue from LNG Canada’s construction phase, while also strengthening relationships with industry partners.
2021 – Launch of Cedar LNG Partnership: With pipeline capacity and community support in hand, the Haisla leadership sought an industry partner for their own LNG project. After considering various proponents, the Nation opted for a major midstream company. In June 2021, Haisla Nation signed an agreement with Pembina Pipeline Corporation to jointly develop Cedar LNG. Crucially, the deal preserved Haisla’s vision of majority ownership: Haisla Nation would hold 50.1% of Cedar LNG, with Pembina taking a 49.9% stake. This was Pembina’s first equity partnership with a First Nation, and the company was drawn by Haisla’s secured pipeline capacity and near-unanimous community backing. By reversing the usual roles with an Indigenous nation inviting industry to join its project, Cedar LNG marked a new model.
2021 – Kitimat LNG Project Cancelled: Meanwhile, in the same year, the separate Kitimat LNG project (at Bish Cove) was formally shelved. Chevron and Woodside, co-owners of that project since 2015, announced in 2021 that they would cease funding and attempt to divest the assets after failing to find a buyer. This divestiture presents an opportunity for Haisla.
2022–2023 – Regulatory Approvals and Financing: Over 2022 and 2023, Cedar LNG progressed through regulatory and financing milestones. The project underwent a rigorous environmental assessment by British Columbia and was noted for achieving one of the world’s lowest-emissions LNG designs. By early 2023, Cedar LNG received its Environmental Assessment Certificate from B.C., with the BC Energy Regulator and federal authorities also voicing support. On the financing front, the Haisla community demonstrated remarkable unity: in a 2024 ratification vote, nearly 93% of Haisla members approved the plan to borrow up to C$1.4 billion to finance the Nation’s equity share in Cedar LNG. This debt, secured via the First Nations Finance Authority, is the largest loan the FNFA has ever issued. The federal government also endorsed Cedar LNG as a model of Indigenous-led infrastructure, committing $200 million through its Strategic Innovation Fund in March 2025.
2024 – Cedar LNG Final Investment Decision: In June 2024, the Haisla Nation and Pembina announced a positive Final Investment Decision (FID) for Cedar LNG, green-lighting full construction. The project – estimated at ≈C$6 billion total cost – will be a floating LNG facility moored in Douglas Channel, with a nameplate capacity of 3.3 million tonnes per annum (MTPA). Significantly, Cedar LNG’s site is adjacent to existing infrastructure: the Coastal GasLink pipeline terminus is only about a kilometer away, meaning just a short connecting pipeline is needed to feed gas to the floating terminal. This efficient setup leverages infrastructure already built for LNG Canada, underscoring Cedar’s strategic positioning. By late 2024, major pieces were in place: engineering contracts awarded, a 20-year offtake agreement signed with Petronas for 1 MTPA of Cedar’s output, and fabrication of the floating facility underway overseas. Cedar LNG is on track to begin shipping LNG by late 2028.
2025 – Acquisition of Kitimat LNG Assets: In October 2025, Haisla Nation (through its development company yáqwa) finalized an agreement to acquire the remaining assets of the defunct Kitimat LNG project from Chevron Canada and Woodside Energy. According to a BC regulatory filing, Haisla’s subsidiary Bish LNG GP Ltd. will assume ownership of the Kitimat LNG environmental assessment certificate, permits, and long-term leases for the Bish Cove site. For now, Haisla leaders have not announced new plans for Kitimat LNG’s assets; however, controlling this strategic deep-water site (and its associated 480 km Pacific Trail Pipeline route from northeast BC) gives the Nation a powerful option to expand LNG or related projects in the future. By taking over these assets at presumably minimal cost, the Haisla have positioned themselves to carry forward or repurpose a project that once promised to be one of BC’s largest – now with Indigenous ownership at the forefront.
2023–2025 – LNG Exports Begin: In parallel with Cedar LNG’s development, LNG Canada achieved operational status. In mid-2025, LNG Canada shipped its first cargo of LNG to Asia, officially making Kitimat the launch point of Canada’s LNG export era. LNG Canada’s initial phase will produce 14 MTPA when fully ramped up. A potential Phase 2 expansion (doubling capacity) is under study for FID in 2026. The Haisla Nation’s strong partnership with LNG Canada, formalized through impact benefit agreements, was integral to the project’s success on the ground. With LNG Canada in operation and Cedar LNG under construction, the Haisla territory of Kitimat is emerging as a global LNG hub.
Late 2028 (Projected): Cedar LNG begins operations, delivering ~3 MTPA of LNG to Asian markets and inaugurating the world’s first Indigenous-majority-owned LNG export facility. Haisla Nation transitions into its role as co-operator and beneficiary of a major energy infrastructure asset on their land.
Cedar LNG – Indigenous-Led LNG Development
Cedar LNG stands as the flagship of Haisla Nation’s LNG strategy. It is the world’s first Indigenous-majority-owned, large-scale LNG export facility. Haisla Nation holds 50.1% ownership via Cedar LNG Partners LP, with Calgary-based Pembina Pipeline (49.9%) providing industry expertise and financial backing. The project involves a single floating LNG production unit moored near Kitimat. Designed capacity is 3.3 million tonnes per year.
Project Scope and Design
Cedar LNG will tap into abundant Western Canadian gas via a short connector to the existing Coastal GasLink pipeline. By using BC Hydro’s clean electricity for liquefaction, Cedar LNG achieves an emissions intensity of only 0.08 t CO₂ per tonne LNG, among the lowest of any LNG plant globally. The floating plant will be built by Samsung Heavy Industries in Asia and towed to Kitimat upon completion. Pembina, as operating partner, will oversee construction and integrate Haisla members into operations training. Target startup is late 2028, aligning with strong LNG demand growth in Asia.
Financing and Ownership
From the outset, Haisla leadership was adamant that Cedar LNG be Haisla-led. The Cedar LNG board is evenly split (four Haisla directors, four Pembina directors), ensuring joint decision-making with Indigenous perspectives at the table. To finance a megaproject of this scale, the Haisla secured creative funding: a C$1.4 billion loan through the First Nations Finance Authority will cover roughly 20% of total project cost, representing the Haisla’s equity share. This is the largest single financing ever arranged by a First Nation in Canada. Additional capital for Cedar LNG comes from Pembina’s investment and a syndicate of commercial banks that will provide about 60% debt financing at the project level. The federal government’s $200 million grant further boosts the project’s funding mix. All told, this financing plan allows the Haisla to build a multi-billion dollar export facility with manageable risk: debt is secured against project cash flows, and Pembina brings operational insurance and LNG marketing capability.
Strategic Positioning
Cedar LNG’s competitive edge lies in strategy and geography. By piggybacking on infrastructure already in place (the gas pipeline, road and port from LNG Canada) and by leveraging the Haisla’s deep knowledge of local conditions, Cedar LNG achieved regulatory and public buy-in relatively smoothly. The project’s timing is also strategic: coming online just as global LNG demand rises and Western Canada seeks market diversification beyond the U.S. For the Haisla Nation, Cedar LNG is more than an energy project, it is a vehicle for economic self-determination. “We have proven that Indigenous communities can successfully forge a path to economic independence and generational prosperity,” said Chief Councillor Crystal Smith at FID[2]. The project is expected to create 300 construction jobs and ~100 long-term operations jobs. By owning the project, the Haisla will capture revenue streams and direct them to community priorities for decades to come.
Pipeline Ownership: Strategic Equity in Coastal GasLink
In addition to securing gas transportation capacity for Cedar LNG, the Haisla Nation also holds an ownership stake in the Coastal GasLink pipeline, the 670 km system delivering natural gas to both LNG Canada and Cedar LNG. In 2022, TC Energy sold a 10% equity interest in the pipeline to a partnership of 16 Indigenous communities along the pipeline corridor. The Haisla Nation is among these equity partners, having negotiated their position as part of long-term engagement with the project.
This investment makes the Haisla both a customer of, and partial owner in, the key infrastructure feeding LNG development in their territory. It represents vertical integration across the LNG value chain, from upstream transport to liquefaction and export.
Acquisition of Kitimat LNG (Bish Cove) Assets
A notable chapter in Haisla’s LNG journey is the takeover of the Kitimat LNG site at Bish Cove. This project was one of the earliest LNG proposals in BC (originally launched by Apache Corp. and EOG, later taken over by Chevron and Woodside). It had secured key permits and even conducted extensive site preparation on Haisla reserve land. However, amid shifting market conditions, Chevron and Woodside withdrew, leaving the project dormant after 2015 and officially cancelling it in 2021. For the Haisla Nation, this was an opportunity to reclaim control over a large industrial site in their territory.
In late 2025, Haisla’s development arm (yáqwa Development Corporation) reached an agreement to purchase the Kitimat LNG terminal assets from Chevron Canada and Woodside Energy. According to regulatory filings, the Haisla’s entity Bish LNG GP Ltd. will assume “the permits, licences and remaining land tenures” associated with the Kitimat LNG project. This includes the provincial Environmental Assessment Certificate for an 18 MTPA LNG plant and the associated Pacific Trail Pipeline corridor from the BC interior. In essence, Haisla Nation is acquiring a permitted LNG site that had seen significant early works (roads, grading, environmental baseline studies) but was never completed.
From an economic perspective, the acquisition is savvy. Chevron and Woodside reportedly invested substantially into Kitimat LNG (constructing a new access road through rugged terrain, clearing the site, etc.), only to write off the project at a multi-billion-dollar loss. While terms were not publicly disclosed, it’s likely a nominal transaction with Haisla taking on site stewardship. In return, the Nation gains a valuable asset that can either be developed in partnership with others in the future or even used for other industrial purposes (with LNG Canada and Cedar LNG, Kitimat is becoming an energy and port hub). For now, Haisla leaders will be considering options and will consult their community before any major new initiative at Bish Cove. Regardless, this move underscores Haisla’s long-term vision: they are consolidating control over LNG-related infrastructure in their territory, solidifying their role as key decision-makers in the regional economy
Haisla Joint Ventures and Services in LNG Operations
Beyond ownership stakes, the Haisla Nation has expanded its participation in LNG through a network of joint venture companies and service agreements. These Haisla-affiliated businesses provide critical services to LNG Canada and will do the same for Cedar LNG, ensuring the Nation captures economic benefits across the project lifecycle.
Key examples include:
HaiSea Marine (Haisla Nation & Seaspan): Formed in 2019, HaiSea Marine is the dedicated provider of tugboat and marine terminal services for LNG Canada. The JV is 51% owned by Haisla Nation and 49% by Seaspan. Under a 12-year, ~$500 million contract with LNG Canada, HaiSea operates five state-of-the-art escort tugs based at Kitimat.
Mammoet-Haisla Joint Venture: As noted earlier, this partnership between Haisla Nation and Netherlands-based Mammoet ensured Haisla involvement in the construction phase heavy lifting at LNG Canada.
Camp Services and Other Contracts: Through various member-owned companies and partnerships, Haisla Nation has secured contracts for catering, security, maintenance, environmental monitoring, and workforce supply for LNG Canada.
Through these joint ventures and agreements, the Haisla Nation provides a wide range of services to LNG Canada and soon Cedar LNG: marine towing, port logistics, heavy haul, construction support, workforce supply, and more. This approach has multiplier effects: it creates jobs for Haisla members, profits for Haisla businesses, and transfers skills and knowledge to the Nation. It also means LNG projects in Haisla territory operate with a local partner that is literally invested in their success and compliance. Haisla joint ventures have become indispensable contractors to these mega-projects, further solidifying the Nation’s leadership role.
Economic Benefits and Community Impacts
The Haisla Nation’s LNG strategy is grounded in economic self-determination. LNG development has already generated substantial benefits across employment, business revenue, infrastructure, and governance capacity.
Employment and Training
LNG Canada and Haisla joint ventures (e.g., Mammoet-Haisla, HaiSea Marine) created hundreds of jobs and apprenticeships for Haisla members, significantly reducing unemployment and building long-term certifications in trades and marine operations. Cedar LNG will expand this workforce, with Pembina committing to maximize Haisla employment once operational.
Business Revenues and Equity Returns
Haisla-owned companies and partnerships are generating sustained income reinvested into community priorities. Long-term returns will increase further through majority ownership of Cedar LNG (50.1%) and potential midstream equity. After debt repayment, Cedar LNG profits are expected to provide multi-generational revenue supporting programs and services—an example of “economic reconciliation” through independent income streams.
Community Infrastructure and Social Programs
LNG-related revenues have already funded major community improvements, including new housing, a health centre with traditional healing space, and expanded education, social, and cultural programs. Future Cedar LNG income is expected to support upgraded utilities, recreation facilities, and elder care infrastructure.
Revenue Sharing
Provincial LNG agreements and Coastal GasLink benefits provide additional, diversified revenue for governance and services, supplementing business income and equity returns.
Growing Technical and Administrative Capacity
The Nation has rapidly developed expertise in environmental assessment, negotiations, finance, and project management. Haisla professionals involved in Cedar LNG planning now form a growing cadre of Indigenous technical leaders, strengthening long-term self-governance and investment capability.
Social Outcomes
Members describe greater hope, pride, and opportunity. Stable LNG revenues are expected to reinforce reductions in poverty-related challenges and expand cultural revitalization initiatives.
A Unique Model: Lessons and Replicability
The Haisla model is widely admired but partially unique, driven by specific advantages and strategic decisions.
Key Success Factors
Strategic geography: Deepwater port access and industrial land made Kitimat ideal for LNG, attracting multiple proponents and giving Haisla leverage.
Unified leadership vision: Early, consistent support for LNG created stability and strong community mandate (e.g., 93% loan approval).
Negotiating for ownership: Securing pipeline capacity in 2018 positioned the Nation as a future project proponent, enabling Cedar LNG.
Strong partnerships and timing: A ready project met Pembina’s LNG ambitions during a favourable policy environment for Indigenous ownership.
Right-sized project: Cedar LNG’s mid-scale FLNG design made majority Indigenous equity realistic.
Emerging Influence
Other Nations are adopting similar strategies. The Nisga’a Nation’s Ksi Lisims LNG—along with their acquisition of the PRGT pipeline—is a direct example of Haisla-inspired infrastructure control, though it faces a more complex regional governance landscape. More broadly, Indigenous ownership models are accelerating across Canada, supported by new financing tools and policy mechanisms.
Limits to Replicability
Not all Nations have comparable geography, governance unity, capacity, or appetite for financial risk. Cultural priorities, partner availability, and project economics vary widely. Haisla’s significant debt exposure (C$1.4B) underscores that such models require strong due diligence and long-term confidence.
Conclusion
The Haisla Nation has moved from project host to industry leader by prioritizing ownership, strategic negotiation, and community unity. Through LNG Canada, pipeline capacity rights, Cedar LNG, and site acquisitions such as Bish Cove, the Nation has built a vertically integrated LNG strategy rooted in control and long-term prosperity. Their model of Indigenous ownership of major energy infrastructure sets a national precedent and outlines how other Indigenous organizations can approach major project development.
Comments