Sept 15 (Reuters) - Canada's federal government and the

province of British Columbia have approved the Ksi Lisims LNG

project, a proposed liquefied natural gas export terminal to be

built on the country's northwest Pacific coast.

The Canadian government under Prime Minister Mark Carney is

aiming to accelerate the construction of natural resource

projects to boost the economy and reduce potential impacts from

U.S. tariffs.

The approval issued on Monday formally authorizes Ksi Lisims

under the Impact Assessment Act, the sweeping regulatory

framework that governs major infrastructure projects in Canada.

It sets the stage for a possible final investment decision

before the end of the year by the project's proponents -

Houston, Texas-based Western LNG; a consortium of Canadian

natural gas producers called Rockies LNG; and the Nisga'a First

Nation, who own the land the Ksi Lisims site is located on.

The proponents have said construction could begin this year,

with the site, located on B.C.'s northwest coast near the

community of Gingolx, operational by 2029.

With a planned capacity of 12 million tons per year, Ksi

Lisims could become Canada's second-largest liquefied natural

gas export terminal, after Shell-led LNG Canada, which began

operations this year.

Its proponents say Ksi Lisims will have one of the lowest

carbon intensities of any LNG export facility in the world, as

it is being designed to be powered by renewable

hydroelectricity.

Still, B.C. Hydro's capacity to meet the project's renewable

electricity needs by the target date remains uncertain.

Both Shell and TotalEnergies have signed

20-year LNG purchase agreements with Ksi Lisims, whose Pacific

coast location offers shorter shipping times to Asian markets

than U.S. Gulf Coast competitors.

Construction is already under way on the 900-km Prince

Rupert Gas Transmission pipeline, which will transport natural

gas from the shale fields of northeast B.C. to the Ksi Lisims

facility.