TransCanada Corp. will begin building its 415-mile, 48-in. OD Coastal GasLink pipeline in early 2019, pending a positive final investment decision on the linked LNG Canada liquefaction plant.
TransCanada’s statement followed a commitment from the chief executive of LNG Canada that the $40-billion (Can.) LNG export terminal would be under construction in 2018. LNG Canada is a joint venture of Royal Dutch Shell PLC, PetroChina Co. Ltd., Mitsubishi Corp., and Korea Gas Corp.
Coastal GasLink will carry 5 bcfd of natural gas from shale fields in Alberta and northeast British Columbia to LNG Canada’s proposed 24 million-tonne/year export terminal near Kitimat on British Columbia’s northwest coast.
TransCanada will own and operate the pipeline and expects to award contracts for its construction to four consortia in the next 2 months. TransCanada estimates Coastal GasLink’s cost at $4.8 billion (Can.). The company expects to provide a cost update by the time it awards construction contracts.
The $4.8-billion (Can.) price tag in 2011 dollars would equate to $5.3 billion (Can.) now, according to the Bank of Canada inflation calculator.