Coastal GasLink expansion moves forward

Key Takeaways:

• TC Energy has officially sanctioned the Phase 2 expansion of the Coastal GasLink pipeline following LNG Canada’s positive Final Investment Decision.
• The expansion will nearly double the pipeline’s capacity from 2.1 Bcf/d by adding five compressor stations along the existing 670-kilometre route without laying additional pipe.
• Construction is set to begin in early 2027, creating up to 2,100 peak construction jobs, with commercial operations targeted for the early 2030s.

The Whole Story:

TC Energy Corporation has confirmed that Phase 2 of the Coastal GasLink (CGL) pipeline will proceed after LNG Canada and its joint venture participants reached a positive Final Investment Decision (FID) to expand their export facility in Kitimat, B.C. The announcement satisfies the conditions of TC Energy’s previously approved conditional FID for the project.

The CGL pipeline currently transports approximately 2.1 billion cubic feet per day (Bcf/d) of natural gas. Phase 2 will nearly double the pipeline’s transport capacity to feed LNG Canada’s expanded liquefaction operations. The expansion will be achieved without laying new pipe, instead relying on the construction of five new compressor stations and facility upgrades along the existing 670-kilometre corridor running from Dawson Creek to Kitimat.

Phase 2 will be delivered through a risk-mitigated execution model. LNG Canada will act as Phase 2 Execution Manager to oversee construction, while CGL remains the owner, operator, and permit holder. CGL and TC Energy will provide technical advisory, procurement, and operational support. This commercial arrangement limits CGL’s direct capital exposure and construction cost risks, aligning with TC Energy’s capital discipline strategy.

“Coastal GasLink pipeline was a nation-building project that established Canada’s first direct path for natural gas to reach global LNG markets and Phase 2 is building on that legacy,” said François Poirier, TC Energy President and Chief Executive Officer. “By nearly doubling the capacity of this world-class infrastructure, we are maximizing the value of this asset, which is underpinned by the Western Canada Sedimentary Basin—one of the most prolific natural gas resource basins on the planet.”

Energy and Natural Resources Minister Tim Hodgson noted that the expansion reinforces Canada’s broader economic strategy: “Canada’s investment supercycle is underway—and LNG Canada Phase 2 and the expansion of Coastal GasLink are another powerful vote of confidence in Canadian energy and the Canadian economy… This is what it looks like to build Canada into an energy superpower and the strongest economy in the G7.”

Construction on CGL Phase 2 is scheduled to begin in early 2027, with an anticipated in-service date in the early 2030s. At peak construction across five project sites, the expansion is expected to employ up to 2,100 workers, continuing long-term commercial agreements with 20 elected Indigenous communities along the right-of-way.