The companies behind the Coastal GasLink pipeline and the massive LNG Canada facility in Kitimat, B.C., have signed agreements that bring both of their second phases closer to reality.
TC Energy says the agreement to establish a "comprehensive commercial framework" is an important milestone for advancing its Coastal GasLink Phase 2, while supporting LNG Canada's pathway to a final decision on its second stage.
The LNG Canada expansion is on Prime Minister Mark Carney's list of major projects of national significance, to be considered for fast-tracking.
François Poirier, president and CEO of TC Energy, said in a statement on Wednesday that doubling the capacity of the pipeline would strengthen Canada’s role "as a reliable supplier to global LNG markets."
The Coastal GasLink pipeline brings gas from fields in northeast B.C. to the LNG Canada facility on the coast, from where it is exported.
B.C. Energy Minister Adrian Dix says the deal is "one more necessary step" to making LNG Canada's second phase a reality.
He contrasted the project to "press conferences" and "press releases" about a pipeline from Alberta to the coast, which the B.C. government has dismissed as lacking a proponent and a solid plan.
"Here's a project that is, by any standard, a massive project of breathtaking importance in an industry that didn't exist a few years ago that is now growing significantly, and these are actual steps," Dix said in an interview.
Picture Courtesy: THE CANADIAN PRESS/Darryl Dyck
