TC Energy, the builder of LNG Canada project feedgas pipeline (Coast GasLink), has revealed that it continues to face “significant cost pressures” in Western Canada relating to labour costs and shortages of skilled labour.
TC Energy, the builder of LNG Canada project's feedgas pipeline (Coast GasLink), has revealed that it continues to face “significant cost pressures” in Western Canada relating to labour costs and shortages of skilled labour, along with contractor underperformance and disputes which increased cost of Coastal GasLink project.
“The project has also been impacted by other unexpected events including drought conditions, and erosion and sediment control challenges.”
The company now expect a material increase in project costs and TC Energy’s “corresponding funding requirements” as it is “actively pursuing cost mitigants and potential recoveries from contractors to offset a portion of these costs, some of which may not be conclusively determined until after project completion. “We expect to provide an updated capital cost estimate in early-2023 that will incorporate the scope of recent developments.”
TC Energy has said that the project is now overall 80% complete as it continues to target mechanical completion by year-end 2023.
According to the
Global LNG Database®, the 14 MMT/Y under-construction LNG Canada project’s shareholders are Shell 40%, PETRONAS 25%, PetroChina Canada 15%, Mitsubishi Corporation 15%, and Kogas 5%.
The project is planned to be #commissioned in the first quarter of 2025.
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