TransCanada will construct the Coastal GasLink pipeline project following the decision to sanction the LNG Canada natural gas liquefaction project.
The project is a 670 kilometre pipeline designed to transport natural gas from the Montney gas-producing region near Dawson Creek, British Colombia to the LNG Canada facility in Kitimat. The pipeline will have an initial capacity of 2.1 billion cubic feet per day (Bcf/day) with the potential for expansion to up to 5 Bcf/day.
Construction on the CAD$6.2 billion project is expected to begin in early 2019 with a planned in-service date in 2023. It is underpinned by a 25-year transportation service agreement with the LNG Canada participants.
Russ Girling, TransCanada's president and CEO says: 'Once constructed, Coastal GasLink will become a critical component of British Columbia's natural gas pipeline infrastructure, connecting our abundant, low-cost natural gas resources to global markets.
'Solid underlying market fundamentals combined with robust commercial support for the project, position us to prudently fund Coastal GasLink over its multi-year construction along with our existing $28 billion near-term capital programme in a manner consistent with our long-established strong financial profile.'
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