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LNG Canada has awarded the engineering, procurement and construction management (EPCM) contract for Phase 2 of the Coastal GasLink (CGL) pipeline to TR Canada E&C Inc., a division of Técnicas Reunidas SA. Técnicas Reunidas announced the award on 19 October 2026.
The contract is worth more than €200 million, or about $225 million. Execution is expected to start in early 2027 and to last more than four years. The scope covers five additional compressor stations and modifications to existing and planned facilities along the 670 km route from Dawson Creek to Kitimat, British Columbia.
Phase 2 is designed to double the pipeline's capacity of 2.1 bcf/d, while the original design allows up to about 5 bcf/d. Each new station is planned with 30 MW compression turbines. The award follows the final investment decision on LNG Canada Phase 2, which doubles the Kitimat plant from 14 mtpa to 28 mtpa. TC Energy confirmed CGL Phase 2 on 29 September 2026.
LNG Canada is a joint venture of Shell, Petronas, PetroChina, Mitsubishi Corporation and KOGAS. It leads construction as Phase 2 execution manager. TC Energy holds 35%, with KKR and AIMCo holding the other 65%, and remains owner, operator and permit holder.
TC Energy says the capacity increase comes without laying new pipe. Demand will therefore centre on compressor-station piping, valves, flanges and forged fittings rather than line pipe.
Source: Oil & Gas Journal
Related products: Steel pipes & tubes
