TC Energy Green-Lights Coastal GasLink Phase 2 After LNG Canada FID

TC Energy Green-Lights Coastal GasLink Phase 2 After LNG Canada FID

TC Energy will proceed with Coastal GasLink Phase 2 after LNG Canada partners approved the Kitimat expansion, according to a Reuters report via BOE Report. The company announced the decision Tuesday, September 29, 2026.

Market Impact

Phase 2 will nearly double the pipeline’s capacity through new compressor stations and upgrades along the existing 670-km (about 416-mile) route between Dawson Creek and the LNG Canada export facility in Kitimat, British Columbia, Reuters reports.

The pipeline decision follows LNG Canada’s own approval earlier Tuesday. Partners led by Shell approved a multi-billion-dollar Phase 2 expansion of the Kitimat facility. It will double production capacity to 28 million metric tonnes per annum (mtpa) from 14 mtpa. LNG Canada is a joint venture of Shell, Petronas, PetroChina, Mitsubishi Corp and Korea Gas Corp.

Reuters attributes the wider interest in new LNG projects to tight global markets, outages among major producers, and long-term demand growth from countries looking to replace coal with cleaner-burning natural gas.

TC Energy operates a 58,100-mile pipeline network that supplies more than 30% of the natural gas consumed daily across North America, per the report.

The source does not give a Phase 2 cost estimate, construction schedule, number of compressor stations, or contractor names. It also does not describe how TC Energy will procure the work.

What It Means for Subcontractors

• Scope is compression and upgrades, not new right-of-way. The work is described as new compressor stations plus upgrades along the existing 670-km Dawson Creek to Kitimat route. Mechanical, piping, electrical and civil firms near that corridor should read the scope as station-focused. Confirm with TC Energy which station sites and upgrade segments are in the program.
• Procurement path is undefined. The report names no EPC firm, general contractor or prime. It gives no RFP date and no bidder list. Do not assume subcontract roles until TC Energy or its primes announce them. Ask TC Energy’s supply chain contacts directly how Phase 2 packages will be tendered.
• Get on vendor lists now. If you worked on the existing pipeline, document your safety record, past scope and northern BC mobilization capability. Having that file ready lets you respond quickly once prime contractors start prequalifying.
• Note the LNG side separately. The Kitimat expansion is a separate multi-billion-dollar program run by the LNG Canada partners, and the report does not say who will build it. Keep pipeline and terminal pursuits on separate tracks, since the owners and procurement channels differ.
• Price for remote-corridor logistics. The route is 670 km between Dawson Creek and Kitimat. Crews working on compressor station tie-ins and upgrades will likely need camp, transport and equipment plans. That reasoning is our own inference, because the source gives no detail on logistics or schedule.

Reuters did not report a construction start date or contractor selections, so those details should come from TC Energy’s next project update.