Fri. Sep 20th, 2024

The calculated cost of TC Energy Corporation’s Coastal GasLink pipeline project has jumped 70% to $11.2-billion; however the company says it’s still on track to be completed by the end of 2023.

TC Energy’s President and Chief Executive Officer François Poirier says revised agreements with LNG Canada have been signed, solidifying the “timely execution of our largest LNG-linked project.”

The 670 km project, which will transport natural gas from northern BC to LNG Canada’s export site in Kitimat, BC, is roughly 70% complete.

TC Energy says capital costs increased due to impacts of COVID-19, weather, and other events outside the company’s control, reiterating the project remains “economically viable.”  “We currently estimate our portion of the equity contributions to Coastal GasLink LP over the project life to be approximately $2.1 billion, including the $1.9-billion equity contribution,” the company said.

In a Thursday statement, LNG’s CEO Jason Klein said he’s “happy” with the resolution with Coastal GasLink.

The pipeline project conjured up a whirlwind of controversy, met by vicious opposition from some and staunch support from others, including sporadic protests popping off at construction areas near Houston, BC for nearly five years.

On February 17, Coastal GasLink security workers on the Morice River Forest Service Road were rolled up on by a masked group of people armed with weapons, including axes, who began setting fires and destroying property.

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