3 min. read
LNG Canada offered thousands of dollars in financial compensation to at least one Kitimat, B.C., resident for their discretion around “additional incremental flaring and noise” from the gas liquefaction and export facility, according to a document reviewed by The Narwhal.
In return, the resident would agree to “not make any complaints or raise any concerns or objections with respect to LNG Canada, the LNG facility or the works with any third parties, including but not limited to members of the media, the [BC Energy Regulator] or the District of Kitimat” related to operations for around one week at the beginning of November.
The document, shared with The Narwhal by a source who asked that their name not be published, details how LNG Canada offered to pay more than $6,000 in estimated costs for the resident and their family to “relocate” around 200 kilometres away to Prince Rupert for a week — or stay and deal with the impacts. By signing, the resident would agree to “release and forever discharge LNG Canada and its affiliates, shareholders, owners, agents, staff and representatives” from any legal actions against the company, including if the plant’s operations during this period led to “depreciation in property value, or damage to land or property.”
As The Narwhal previously reported, noise and emissions that smelled like “burnt plastic or burnt Styrofoam” from the LNG plant have been disrupting some residents’ daily lives for the past several months. LNG Canada has been in its startup phase for more than a year and, since September 2024, has posted 25 notifications of planned and unplanned flaring events, where excess or waste gas is burnt off. The flame can reach more than 100 metres high.
LNG Canada did not directly answer questions about the details of the document but acknowledged it has “offered temporary relocation support to some residents during the start-up activity.”
“Flaring in this phase is a normal occurrence and can result in a period of elevated noise,” a spokesperson wrote in an emailed statement. “We continue to recognize that this may impact some residents living near the facility.”
The spokesperson declined to specify how many residents have been offered compensation.
B.C. Premier David Eby declined to comment and referred questions to the Ministry of Energy and Climate Solutions, which did not respond prior to publication.
LNG Canada is an estimated $40-billion liquefied natural gas (LNG) export project jointly owned by Shell, Petronas, PetroChina, Korea Gas and Mitsubishi. The consortium of companies started shipping overseas in late June.
Fossil fuel companies have long used financial compensation as a tool to win community support — and discourage opposition — to projects like pipelines and processing facilities.
TC Energy, the company that built Coastal GasLink, which supplies gas to LNG Canada, included a clause in one leaked impact and benefit agreement that required a First Nations band council to “take all reasonable actions to persuade [community] members to not take any action, legal or otherwise, including any media or social media campaign, that may impede, hinder, frustrate, delay, stop or interfere” with the pipeline project.
It’s rare, however, for the public to see such a contract.
The compensation offered by LNG Canada to Kitimat residents does not specify wages lost as a result of temporarily relocating to Prince Rupert.
The anonymous source told The Narwhal they are aware of other Kitimat residents who signed similar agreements with LNG Canada but not the amount they were offered. They said a decline in construction jobs now that the facility is built and operating means many locals are feeling the “strain.”
“Families are focused on keeping the roof over their heads, and food on the table,” they said.
