LNG Canada has commissioned TR Canada E&C to conduct front-end engineering design for the second phase of the Coastal GasLink pipeline. This project aims to increase natural gas throughput to 5 billion cubic feet per day, supporting the technical analysis required for a potential final investment decision to expand Canadian export capacity.
LNG Canada, a joint venture comprising Shell, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS, has awarded a front-end engineering design (FEED) contract to TR Canada E&C for the Coastal GasLink Phase 2 project. According to official disclosures, the scope includes comprehensive project design and cost assessments for expanding the midstream infrastructure located in British Columbia.
LNG Canada is a major energy consortium focused on developing a large-scale liquefied natural gas export terminal, while Coastal GasLink is a critical pipeline system operated by TC Energy that connects gas sources to the western coast. This development is a pivotal step in evaluating the feasibility of more than doubling the pipeline's current capacity from 2.1 billion to 5 billion cubic feet per day.
The expansion involves the installation of five 30MW compressor stations and technical modifications to existing facilities. By utilizing the existing 670-kilometer infrastructure corridor, the project seeks to maximize the efficiency of current assets while significantly increasing the volume of natural gas available for liquefaction and export. For the global energy sector, the move signals a strategic intent to scale North American supply to meet rising demand in East Asian and international markets.
This expansion would enhance the competitive positioning of Western Canadian gas by lowering per-unit transportation costs through economies of scale. For engineering and construction firms, the contract underscores a shift toward high-value service agreements within the midstream sector. Investors and stakeholders view this progress as a vital milestone toward a final investment decision, reflecting long-term confidence in the commercial viability of Canadian energy exports.
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