TC Energy (TRP) has signed option agreements to sell a 10% stake in the Coastal Gaslink Pipeline Limited Partnership to Indigenous communities along the pipeline’s route.
Coastal Gaslink is a 670-kilometre project being built to deliver natural gas to the $40-billion LNG Canada facility that’s being developed in Kitimat, British Columbia. The pipeline will have a daily capacity of 2.1 billion cubic feet.
The pipeline, which is crucial to Canada’s liquefied natural gas sector, has been a lightning rod for controversy. It attracted protesters who are opposed to its development, and it has also faced cost overruns.
In a February news release, TC Energy said it’s in “active and constructive discussions” with LNG Canada to resolve a dispute over who will foot the bill for escalating costs. At the time, the company said 59% of the pipeline had been built.
A total of 16 indigenous groups have signed up for an equity stake in Coastal GasLink. TC Energy said the option can be exercised after the pipeline enters into service, pending the consent of LNG Canada.
