TC Energy will proceed with Phase 2 of its Coastal GasLink (CGL) pipeline project after LNG Canada and its partners made a positive final investment decision to expand their liquefied natural gas export facility in Kitimat, British Columbia. The expansion is expected to increase Canadian natural gas exports to global markets, particularly in Asia.
Phase 2 will nearly double the pipeline’s existing capacity of 2.1 billion cubic feet per day. The project will add compressor stations and upgrade facilities along the existing route, rather than build a new pipeline. The route spans 670 kilometres.
Under the agreement, LNG Canada will manage construction, limiting TC Energy’s direct exposure to capital costs and schedule risks. Construction is slated to begin in early 2027, and the expanded pipeline is expected to enter service by the early 2030s. The project could create up to 2,100 jobs at peak construction.
The expansion builds on the initial phase, which established Canada’s first direct route for natural gas to international LNG markets.