TC Energy to nearly double Coastal GasLink capacity, create up to 2,100 construction jobs

CALGARY — Coastal GasLink will move ahead with an expansion expected to nearly double its natural gas capacity and employ up to 2,100 workers during peak construction, following approval of LNG Canada’s terminal expansion.TC Energy announced the decision Tuesday, saying LNG Canada and its joint venture partners had approved the facility’s expansion, meeting the conditions attached to TC Energy’s earlier conditional approval of the pipeline project.Construction is expected to begin in early 2027, with the expanded infrastructure entering service in the early 2030s.Coastal GasLink currently transports approximately 2.1 billion cubic feet of natural gas daily. Phase 2 will increase capacity through new compressor stations and upgrades along the existing 670-kilometre route from Dawson Creek to LNG Canada’s export facility in Kitimat, BC.The expansion will require no additional pipeline, according to TC Energy.Company president and CEO François Poirier said the project would build on Coastal GasLink’s role in opening overseas markets to Canadian natural gas.“Coastal GasLink pipeline was a nation-building project that established Canada’s first direct path for natural gas to reach global LNG markets and Phase 2 is building on that legacy,” said Poirier..He said the expansion would draw on natural gas supplies from the Western Canada Sedimentary Basin while providing long-term benefits for indigenous and local communities, customers and shareholders.LNG Canada will lead construction as the Phase 2 execution manager under commercial agreements announced earlier this year. Coastal GasLink will remain the owner, operator and permit holder of the pipeline and associated facilities.TC Energy and Coastal GasLink will provide technical advice, procurement services and operational expertise. The company said the arrangement limits Coastal GasLink’s capital commitments and exposure to construction cost increases and schedule delays.Peak construction employment is expected to reach up to 2,100 people across five sites. TC Energy said the work would also provide contracting, training and skills development opportunities for indigenous and local communities.The company said construction of the original pipeline generated approximately 25,700 full-time-equivalent jobs over several years in British Columbia.It also reported more than $1.8 billion in contracts awarded to indigenous and local businesses, along with more than $13 million spent on local communities, non-profits and sponsorships..TC Energy said the original pipeline was built with support from 20 elected indigenous communities along the route. Long-term agreements with those communities remain in place.Federal Energy and Natural Resources Minister Tim Hodgson welcomed the expansion, saying it would help Canadian energy reach growing global markets.“This is what it looks like to build Canada into an energy superpower and the strongest economy in the G7,” said Hodgson.TC Energy’s latest outlook identifies LNG exports as the largest source of North American natural gas demand growth over the next decade.The company said Phase 2 would connect more Canadian gas to overseas customers through LNG Canada. TC Energy, a co-owner of Coastal GasLink, will operate the expanded infrastructure.

TC Energy to nearly double Coastal GasLink capacity, create up to 2,100 construction jobs

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