TC Energy said that its Coastal GasLink pipeline, which will supply natural gas to the Shell-led LNG Canada export terminal, is 84 percent complete while the firm is also evaluating the second phase of the project.
Earlier this month, the Canadian firm revealed it now estimates costs for the first phase of its giant 670 kilometers long pipeline to reach C$14.5 billion ($10.9 billion).
If the construction continues into 2024, costs would further increase by up to C$1.2 billion.
TC Energy said in its 2022 results report on Thursday that Coastal GasLink project has now reached 84 percent overall progress, and the firm still expects mechanical completion by the end of 2023.
The pipeline will have the capacity to transport 2.1 billion cubic feet of natural gas per day (bcf/d) from Groundbirch, BC to Kitimat, in the first phase.
As per the LNG Canada plant in Kitimat, the C$40 billion project is 80 percent complete.
The first phase of the giant LNG Canada project includes building two liquefaction trains with a capacity of 14 mtpa.
LNG Canada expects to deliver its first cargo by the middle of this decade.
Besides the first phase, Shell and its partners Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation, and South Korea’s Kogas are also looking to build the second phase of the project.
This includes the development of the second phase of the Coastal GasLink pipeline as well.
Bevin Wirzba, TC Energy’s head of corporate development told analysts during the results call on Tuesday that “LNG Canada is developing not only their first trains, but they’ve asked us to begin the evaluation of Phase 2.”
“We’re very excited to be contemplating the expansion of our system that would not be a linear development. It’s the addition of six compressor station sites, which we’ve demonstrated at Wilde Lake that we’ve just brought to mechanically complete,” he said.
“Project economics, those are obviously confidential, but we’re encouraged by the possibility of advancing to an FID stage,” Wirzba said.
He also mentioned the Cedar LNG project, a joint venture of Pembina Pipeline and the Haisla Nation.
This proposed $2.4 billion floating LNG export facility in Kitimat, British Columbia is looking to receive feed gas from the Coastal GasLink pipeline as well.
“The other project, in addition to Phase 2, that’s important to note is the Haisla-led Cedar LNG project, which would be the largest single indigenous lead investment in Canada’s history. So we’re working with them as a customer as well as an offtaker off of CGL,” Wirzba said.