A $50,000 administrative penalty has been imposed on the entity responsible for a significant LNG export facility along British Columbia’s North Coast due to underwater noise issues encountered during the construction of a tug terminal three years ago. The tug terminal formed part of Phase 1 of LNG Canada’s gas liquefaction and export hub in Kitimat, which commenced operations in the previous year.
The British Columbia Environmental Assessment Office (EAO) recently ruled that LNG Canada (LNGC) breached its environmental assessment certificate while conducting pile-driving activities on multiple occasions in May and June of 2023. The EAO highlighted that LNG Canada failed to comply with various aspects outlined in its marine mammal management and monitoring plan (MMP).
According to the decision, LNG Canada neglected to adequately monitor underwater acoustics at the specified marine mammal exclusion zone boundary, did not deploy multiple marine mammal observers during work, and omitted the use of noise-reducing bubble curtains during all piling operations — all of which were mandatory under its MMP.
In response to the EAO’s findings, LNG Canada contested the conclusions, asserting that its non-compliance stemmed from a procedural debate on whether consultation with regulators was necessary before modifying its monitoring strategy. The company claimed that it utilized vibratory pile-driving, instead of impact methods, to mitigate underwater noise, thereby deeming the originally stipulated 1.9-kilometer MMEZ unnecessary.
Moreover, LNG Canada argued that it adhered to the essence of its environmental certificate conditions by implementing an adaptable, risk-based monitoring framework that effectively safeguarded marine life. Subsequent hydroacoustic modeling reportedly confirmed a rapid reduction in noise levels and minimal impact on aquatic mammals.
Despite these arguments, the regulator dismissed LNG Canada’s justifications, emphasizing that the requirements outlined in the MMP were not open to interpretation or alteration. The regulatory body reiterated that LNG Canada was obligated to adhere strictly to the approved MMP without deviating from its specifications.
In a statement, an LNG Canada spokesperson mentioned that the company was evaluating the EAO’s final ruling. The company acknowledged taking tangible measures to rectify the concerns raised in the decision and enhance monitoring and compliance protocols. This included the development of an updated marine monitoring plan, which received provincial endorsement in 2025.
The federal government has designated LNG Canada as a project of national significance. In late September, the company confirmed its intention to proceed with the $33-billion Phase 2 expansion of the project, aiming to double production capacity at the facility from 14 million to 28 million tonnes of LNG annually.