TC Energy’s Coastal GasLink to proceed after LNG Canada decision

TC Energy TRP-T said on Tuesday its Coastal GasLink Phase 2 project will proceed after LNG Canada and its joint venture partners made a positive final investment decision on the LNG Canada expansion project.

The company said Coastal GasLink Phase 2 will nearly double the pipeline’s capacity through the addition of new compressor stations and upgrades along its existing 670-km route linking Dawson Creek and the LNG Canada export facility in Kitimat, British Columbia.

Tight global markets, outages among major producers and strong long-term demand growth from countries seeking to replace coal with cleaner-burning natural gas are driving interest in new LNG projects and more diversified sources of supply.

Earlier on Tuesday, LNG Canada partners led by Shell approved a multi-billion-dollar Phase 2 expansion of the Kitimat facility that will double its production capacity to 28 million metric tonnes a year from 14 million metric tonnes per annum (mtpa), strengthening Canada’s position in the global LNG export market.

LNG Canada, Canada’s first large-scale LNG export terminal, is a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corp and Korea Gas Corp , and ranks among the country’s largest private-sector investments.

TC Energy operates a 58,100-mile network of pipelines, supplying more than 30 per cent of the clean-burning natural gas consumed daily across North America.