The cost of the Coastal GasLink pipeline that’s expected to support a liquefied natural gas
facility in British Columbia has nearly doubled to $11.2 billion.
TC Energy (TRP) says the cost to run the 670-kilometre pipeline from Dawson Creek in
northeastern B.C. to an export facility in Kitimat has risen from an initial estimate of $6.6 billion.
The new cost estimate reflects the growing size of the pipeline project, as well as challenges
encountered in recent years with the COVID-19 pandemic, according to TC Energy, which is
contributing an additional $1.9 billion to the Coastal GasLink project and maintaining its 35%
ownership stake.
Coastal GasLink has been in development since 2012, when TC Energy was selected by LNG
Canada to build, own, and operate the pipeline.
LNG Canada is a consortium made up of shareholders in the pipeline project: Royal Dutch Shell
(SHEL), Petronas, PetroChina, Mitsubishi (MSBHF), and Korea Gas.
However, the project has been repeatedly delayed due to protests and a backlash against
pipeline development in Canada. The federal government in Ottawa announced earlier this year
an agreement that allows Indigenous groups in B.C. to purchase a 10% stake in the pipeline.
TC Energy says Coastal GasLink is now 70% complete and should be in service by the end of
2023.
TC Energy’s stock is up 16% this year and trading at $69.41 per share.
