TC Energy announced that it has secured commercial agreements with LNG Canada to advance the second phase of the Coastal GasLink pipeline, a move that will double the pipeline’s capacity from 2.5 billion cubic feet per day (bcf/d) to 4.5 bcf/d and bring the project closer to a final investment decision expected by the end of 2026.
The agreements provide the financial and contractual framework for LNG Canada to lead construction of six new compressor stations along the existing pipeline, eliminating the need for additional pipeline infrastructure. By transferring construction and cost‑overrun risk to LNG Canada’s owners, the deal shifts a significant portion of the project’s financial exposure away from TC Energy, a change that follows the original Coastal GasLink project’s history of cost overruns and a final cost more than double the initial budget.
François Poirier, TC Energy’s President and CEO, said the expansion “will help further strengthen Canada’s role as a reliable supplier to global LNG markets.” B.C. Energy Minister Adrian Dix described the deal as “one more necessary step” toward LNG Canada’s second phase, emphasizing the project’s importance in a rapidly growing LNG landscape.
TC Energy’s Q1 2024 earnings report showed comparable EBITDA of $3.1 billion, up from $2.8 billion in Q1 2023, and reaffirmed 2024 EBITDA guidance of $11.2 to $11.5 billion. The company’s strong financial performance provides a solid foundation for supporting the expansion and underscores its continued focus on natural‑gas infrastructure.
The expansion positions TC Energy to capture a larger share of LNG exports, aligning with Canada’s broader strategy to become a leading LNG supplier. The project’s completion will enhance the company’s asset portfolio and support its long‑term growth objectives while mitigating the risk profile through the new risk‑transfer arrangement.
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