TC Energy Corp. (TSX:TRP) officially marked mechanical completion of the $14.5 billion Coastal GasLink (CGL) pipeline in November 2023.
But there is still some work to do on CGL – about $1.2 billion worth -- following the $5.5 billion final investment decision taken by the Haisla First Nation and Pembina Pipeline Corp. (TSX:PPL; NYSE: PBA) near the end of June on the Cedar LNG project.
The Costal GasLink pipeline was built by TC Energy to supply the LNG Canada project in Kitimat with natural gas.
But as part of its negotiations with LNG Canada, the Haisla First Nation managed to negotiate an offtake agreement that gives them 400 million cubic feet per day of natural gas from CGL to supply their own LNG project – Cedar LNG, which will be located about eight kilometres away from the LNG Canada site.
Connecting Cedar LNG to the Coastal GasLink will require an additional $1.2 billion worth of work, TC Energy revealed in its most recent financial statements.
The Cedar Link Project will involve building an eight kilometre connector pipeline between the CGL terminus and the Cedar LNG floating terminal. It will also require building a new compression station at Mount Bracey east of McLeod Lake and LNG metering station at the LNG Canada site.
Construction of the Mount Bracey compressor station begins this year, with work on the Cedar Link Connector pipeline and LNG metering station to start in 2025.
