LNG Canada pipeline on track for 2023 start

Construction on the TC Energy-led Coastal GasLink pipeline continues to progress despite disruptions caused by the Covid-19 pandemic.

The 670-kilometer-long pipeline worth about C$6.6 billion will feed the giant Shell-led LNG Canada development.

Coastal GasLink will move at least 2.1 billion cubic feet per day of natural gas with the potential for delivery of up to 5 bcf/d from the Dawson Creek area to the LNG Canada facility in Kitimat, British Columbia.

The project’s overall progress, including all engineering, procurement and construction activities, reached 43.5 percent completion at the end of April, Coastal GasLink said in an update. Construction alone reached 26.6 percent completion.

“While the project had a limited workforce during the first five months of this year, construction has continued to advance, including the recent 100% completion of clearing
in sections 1 and 2,” Coastal GasLink said.

“Through efforts on our 2021 scheduling and planning, we remain on track to bring the pipeline into service in 2023,” the firm said.

Coastal GasLink made a positive final investment decision to build the pipeline following a go-ahead from its partner, LNG Canada, on October 2, 2018.

Besides Shell, LNG Canada partners include Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation and South Korea’s Kogas.

The giant project, worth more than $30 billion, includes the construction of 14 million tonnes per annum (mtpa) export capacity from the first two trains, with the potential to expand to four trains in the future.

Shell’s CEO Ben van Beurden said earlier this year that LNG Canada was slightly behind with construction works due to disruptions caused by the Covid-19 pandemic.

The CEO did not provide any additional information regarding the delays, but LNG Canada said last year these would not affect the first LNG shipment expected in the middle of the decade.

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