September 29, 2026 - TC Energy is moving ahead with the second phase of its Coastal GasLink pipeline project following a final investment decision to double the capacity of the LNG Canada export facility in British Columbia.

TC Energy confirmed that conditions associated with its previously announced conditional final investment decision for Coastal GasLink Phase 2 have now been satisfied. The decision follows LNG Canada and its joint venture participants approving Phase 2 of the liquefied natural gas export project in Kitimat.

The Coastal GasLink expansion will nearly double the capacity of the existing pipeline, which currently has the ability to transport approximately 2.1 billion cubic feet per day of natural gas.

Rather than constructing a second pipeline, Phase 2 will increase capacity along the existing 670-kilometre, or approximately 416-mile, route through the addition of five compressor stations and modifications to existing and planned facilities.

Construction is expected to begin in early 2027, with the expanded system anticipated to enter service in the early 2030s. Approximately 2,100 workers are expected to be employed across five sites during peak construction.

Under the project structure, LNG Canada will act as Phase 2 Execution Manager and lead construction activities. Coastal GasLink will remain the owner, operator and permit holder of the pipeline, while TC Energy and Coastal GasLink will provide technical, procurement and operational expertise.

TC Energy said the arrangement is designed to limit Coastal GasLink's capital commitments and exposure to construction cost and schedule risks.

The pipeline expansion is necessary to supply the additional natural gas required by LNG Canada's newly approved Phase 2 development.

LNG Canada, led by Shell, plans to expand the Kitimat facility from two processing trains to four, doubling LNG production capacity from approximately 14 million tonnes per year to 28 million tonnes annually.

Phase 2 will also include another LNG storage tank, a condensate tank, an additional loading berth and expanded utilities and processing infrastructure.

The LNG Canada joint venture consists of Shell with a 40% interest, PETRONAS with 25%, PetroChina with 15%, Mitsubishi Corp. with 15% and KOGAS with 5%.

LNG Canada estimates that construction of the terminal expansion could support as many as 4,000 jobs in Kitimat. Once the second phase is operating, the company expects approximately 90 additional permanent employees and around 150 additional contractor positions.

The company has also estimated that Phase 2 could generate more than C$50 billion in government revenues over the life of the project through taxes, royalties, direct spending and related economic activity.

The expansion also includes a potential Indigenous investment of up to C$1 billion. Five First Nations located near LNG Canada's operations have an option for their investment partnership to participate in a special-purpose entity that would acquire the future LNG storage tank being constructed as part of Phase 2.

Coastal GasLink transports natural gas from the Dawson Creek area of northeastern British Columbia across the province to LNG Canada's export terminal at Kitimat on Canada's Pacific Coast.

The location provides Canadian natural gas producers with direct access to overseas LNG markets, particularly in Asia, where long-term energy demand remains a major driver of new LNG investment.

The development also has implications for international coal and power markets. Expanding North American LNG export capacity will make additional natural gas available to Asian and other international buyers at a time when coal and natural gas continue to compete for power-generation demand in many markets.

Global energy supply disruptions and concerns over energy security have increased interest in both LNG and coal in recent years, while several countries continue to view natural gas as part of their longer-term efforts to reduce dependence on coal-fired generation.

The original Coastal GasLink development also produced significant economic activity in British Columbia. TC Energy has said more than C$1.8 billion in contracts were awarded to Indigenous and local businesses during construction and that the project helped create approximately 25,700 full-time-equivalent jobs in the province.

With LNG Canada Phase 2 now approved and Coastal GasLink Phase 2 moving forward, western Canada is positioned for a substantial increase in natural gas transportation and LNG export capacity during the next decade.

Construction on Coastal GasLink Phase 2 is scheduled to begin in early 2027.