Coastal GasLink Pipeline Reaches 80% Completion, but Parent Company Expects Another Cost Increase

Coastal GasLink’s pipeline project is now officially 80 percent complete, but its parent company says costs may be on the rise once again.

Construction itself is now three quarters complete, with roughly a third of that work being done this year alone.

Just two of the pipeline’s 8 sections are fully complete, but all but two of those now have at least 60 percent of piping installed.

Despite the progress, CGL’s parent company, TC Energy says the project is continuing to face significant cost pressures.

In June, the company estimated costs to increase from $6.6 billion to $11.2 billion, following a settlement with LNG Canada.

Now, they are expecting another cost increase relating to labour costs and shortages, and contractor underperformance and disputes.

They also cite drought conditions and sediment and erosion control challenges for the increase.

TC, who is holding their Investor Day Event today, say a new cost estimate factoring in these changes will be released early next year.