TC Energy to proceed with Coastal GasLink Phase 2 after LNG Canada final investment decision

TC Energy is proceeding with Coastal GasLink Phase 2 after LNG Canada and its joint venture participants made a positive final investment decision on expanding the LNG Canada facility. The decision satisfies the conditions tied to TC Energy's previously approved conditional final investment decision for the project.

Phase 2 is expected to nearly double the pipeline's existing capacity. The work will add new compressor stations and upgrade facilities along the existing 670-kilometre route from Dawson Creek to the LNG Canada liquefaction facility in Kitimat, northern British Columbia. The expansion will not require construction of a new pipeline route, allowing TC Energy to increase throughput by adding compression and modifying existing infrastructure.

LNG Canada will lead project construction as Phase 2 Execution Manager. Coastal GasLink will remain the owner, operator and permit holder of the pipeline and associated facilities. Coastal GasLink and TC Energy will provide technical advisory and procurement services along with operational support to help deliver the project.

The commercial structure limits Coastal GasLink's capital commitments and overall exposure to construction cost and schedule risks.

Construction is expected to begin in early 2027. The project is anticipated to enter service in the early 2030s.

TC Energy estimates as many as 2,100 workers could be employed at five sites during peak construction. Long-term agreements with 20 elected Indigenous communities along the route remain in place.