TC Energy expects cost of Coastal GasLink pipeline project to rise

Photo: The Canadian Press

Terminus for the Coastal GasLink natural gas pipeline at the LNG Canada export terminal under construction in Kitimat.

TC Energy Corp. says it expects what it is calling a material increase in the cost of its Coastal GasLink pipeline project.

The company says it continues to face significant cost pressures in Western Canada relating to labour costs and shortages of skilled labour, along with contractor underperformance and disputes.

TC Energy says the project has also been hurt by other unexpected events including drought conditions, and erosion and sediment control challenges.

It says it expects to provide an updated capital cost estimate early next year that will incorporate the recent developments.

In July, the company said it expected the cost of the project spanning northern British Columbia had risen to $11.2 billion compared with an earlier estimate of $6.6 billion.

The 670-kilometre pipeline, which aims to carry natural gas across the province to the LNG Canada processing and export facility in Kitimat, B.C., is 80 per cent complete.