TC Energy’s Coastal GasLink Cost Estimate Jumps Nearly 70%

First announced in 2018, the 670-km Coastal GasLink pipeline is being built to transport natural gas to an LNG Canada facility at the west coast of British Columbia, Canada’s first LNG export terminal.

Ruhi Soni and Arunima Kumar, Reuters

TC Energy Corp. said it expects its Coastal GasLink pipeline project to cost CA$11.2 billion (US$8.72 billion), nearly 70% higher than initially budgeted.

Shares of the pipeline operator were down 1.5% at CA$69.46.

The long-delayed pipeline is expected to be integral to Canada’s contribution to the global LNG market, which has seen demand surge as Europe and Asia seek alternatives to Russian energy imports.

TC Energy also said it has settled long-running disputes with LNG Canada, a consortium led by Shell Plc, over the project, adding the pipeline is about 70% complete and is expected to be in mechanical in-service by the end of next year.

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