New agreement moves Coastal GasLink pipeline project closer to second phase

DAWSON CREEK, B.C. — An energy company has signed agreements to advance its pipeline project to its second phase. 

According to a news article by Reuters, TC Energy said its Coastal GasLink pipeline project has signed commercial agreements with LNG Canada.

The Coastal GasLink pipeline currently runs from Dawson Creek, transferring natural gas to the liquefied natural gas (LNG) plant in Kitimat, LNG Canada, from where the product is then exported to international markets.

The Coastal GasLink phase two still requires a final investment decision by LNG Canada and its joint venture participants –  Shell, Petronas, PetroChina, Mitsubishi Corporation and Kogas.  

TC Energy’s CEO François Poirier had earlier said the disruption to global LNG supplies, caused by the Iran war, makes it more likely that the second stage of LNG Canada’s facility be built. 

If firm costs and schedule estimates are approved, the Coastal GasLink phase two will be built using a model that will involve both LNG Canada and Coastal GasLink. 

Poirier said: “Doubling ​the transmission of ⁠natural gas through the existing pipeline will help further strengthen Canada’s role as ​a reliable supplier to global LNG markets.” 

This comes after second phase of the LNG Canada facility was named as one of the first projects to be considered by the government’s new Major Projects Office.