TC Energy signs new agreements for GasLink expansion

TC Energy announced on Wednesday that it has signed commercial agreements with LNG Canada for the second phase of its Coastal 'GasLink Pipeline Project.

The agreements'mark a 'key?milestone in Coastal GasLink Phase 2 which still requires a decision on the final investment by LNG Canada, its joint venture partners and approvals from Coastal GasLink.

These agreements establish a "commercial framework" that helps LNG Canada to achieve FID. They do this by supporting the "front-end engineering, design and subsequent execution activities."

Francois Poirier, CEO of TC Energy, said earlier?this week that disruptions to global liquefied 'natural gas supplies due to the Iran -war make it more 'likely' that a second phase of Canada’s massive LNG Canada facility is built. The parties are now working on a firm schedule and cost estimate for Coastal GasLink Phase 2. If approved, the project would be constructed under a new model that involves both LNG Canada as well as Coastal GasLink.

Poirier said that "doubling the transmission of natural gases through existing pipelines will help further strengthen Canada's position as a reliable LNG supplier on global markets."

The agreements stipulate that LNG Canada will be the project manager for CGL Phase 2 and CGL will provide LNG Canada with technical advisory services.

GasLink, a Shell-led project in Canada, connects the gas fields of northwestern British Columbia to the LNG Canada project. (Reporting by Dharna Bafna in Bengaluru; Editing by Alan Barona)

(source: Reuters)