TransCanada will proceed with construction of the Coastal GasLink pipeline project after a decision to sanction the LNG Canada natural gas liquefaction facility in Kitimat, British Columbia (B.C.) was announced earlier by the joint venture participants of LNG Canada, a consortium comprised of Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS (the LNG Canada Participants).
Coastal GasLink is a 670-km pipeline designed to transport natural gas from the Montney gas-producing region near Dawson Creek, B.C. to the LNG Canada facility in Kitimat. The pipeline will have an initial capacity of approximately 2.1 billion cubic feet per day (Bcf/day) with the potential for expansion of up to approximately 5 Bcf/day. Construction activities are expected to begin in early 2019 with a planned in-service date in 2023.
The estimated C$6.2bn project is underpinned by 25-year transportation service agreements (with additional renewal provisions) entered into with the LNG Canada Participants and includes pre-development costs to date of approximately $470m. The majority of the spend on construction will occur in 2020 and 2021.
For more information visit: www.transcanada.com
8th October 2018
