First Pipe Segments Delivered for Canada's Coastal GasLink Project
(P&GJ) — TC Energy said the first segments of pipe for its Coastal GasLink pipeline project have been delivered to storage sites in Kitimat and Chetwynd, British Columbia, in anticipation of construction ramp-up next year.
Deliveries to other areas across the project route will continue through April 2021 by vessel, rail or truck, until it’s needed for assembly and installation, the company said. That phase of construction is expected to start next summer and continue through to 2022.
About 390,000 tons of pipe is required for the 416-mile (670-km) pipeline, with the majority of materials made in Canada, at Evraz in Saskatchewan.
"Coastal GasLink construction is well underway and progressing on schedule. The delivery of pipe is an exciting and important milestone in advance of welding and pipelay that will commence next summer," said David Pfeiffere, Coastal GasLink president.
"This project is being built to the highest environmental standards and in recognition of Indigenous values," Pfeiffere said. "It is delivering significant economic and social benefits to our indigenous partners, local communities, to British Columbia and beyond, and will play a vital role in delivering cleaner energy to the world.”
Then-TransCanada Corp. announced in October 2018 that it would proceed with construction of the Coastal GasLink pipeline project after a decision to sanction the LNG Canada natural gas liquefaction facility in Kitimat was confirmed by the joint venture participants of LNG Canada, a consortium comprised of Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.
Coastal GasLink is 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 Bcf/d, with the potential for expansion of up to approximately 5 Bcf/day. Construction activities initially were slated to begin in early 2019 with a planned in-service date in 2023.
The estimated C$6.2 billion (US$4.7 billion) 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 $470 million. The majority of the spend on construction was projected to occur in 2020 and 2021.
“Once constructed, Coastal GasLink will become a critical component of British Columbia’s natural gas pipeline infrastructure, connecting our abundant, low-cost natural gas resources to global markets,” said Russ Girling, TC Energy’s president and chief executive officer.
The Coastal GasLink Pipeline project will employ 2,000-2,500 people during construction and generate approximately $20 million a year in ongoing property tax benefits to B.C. communities.
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