Source: Coastal GasLink

LNG Canada: From Groundbreaking to Production, a Canadian Energy Milestone

Coastal GasLink is a project being developed by LNG Canada, a joint venture comprising Shell, Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas Corporation. The Phase I pipeline is owned and operated by TC Energy and its partners, with a total length of 670 kilometres, serving as the critical energy artery connecting natural gas production areas in northeastern British Columbia, Canada, to the LNG export terminal in Kitimat.

The newly launched Phase II project plans to build five new compressor stations at Parrott Lakes, Segundo Lake, Clear Creek, Raccon Lake, and Sukunka Falls, aiming to double the pipeline’s natural gas transmission capacity.

On March 31, 2026, Kitimat, British Columbia — LNG Canada announced that it has formally awarded the Front-End Engineering Design (FEED) contract for the Coastal GasLink natural gas pipeline Phase II to Técnicas Reunidas, a Spanish international engineering firm. This milestone marks the entry of Canada’s West Coast LNG export hub expansion into a critical design phase, further strengthening its position as a stable, low-carbon energy supplier to the Asia-Pacific region.

1. Steady Development of the Coastal GasLink Pipeline Project

2012: TC Energy was engaged by LNG Canada to design, construct, own, and operate the Coastal GasLink natural gas pipeline.

Procurement

The project required approximately 670 km of 48-inch (NPS 48), Grade 550 steel line pipe, with an actual procurement volume of 692 km including spares.

Over half (around 367 km) was supplied by EVRAZ Canada;

Approximately 160–180 km of large-diameter LSAW (Longitudinal Submerged Arc Welded) pipe was supplied by Welspun Corp Limited, India;

140–160 km of Grade 550 high-strength line pipe (48-inch UOE pipe) was supplied by Nippon Steel Corporation (formerly NSSMC), Japan.

Construction

2018: TC Energy selected its primary construction contractors, including Surerus Murphy Joint Venture, SA Energy Group, MacroSpiecapag Joint Venture, and Pacific Atlantic Pipeline Construction Inc.

Surerus Murphy Joint Venture, a partnership between Surerus Pipeline Inc. and J. Murphy & Sons Ltd., is one of Canada’s largest pipeline contractors, specializing in large-scale pipeline and infrastructure projects. It was responsible for construction of Spreads 1 & 2 near Chetwynd in the northeast region, including full scope works: right-of-way clearing, grading, pipe installation, welding, and backfilling.

SA Energy Group, a prominent Canadian pipeline construction company working in partnership with Aecon Group, was the general contractor for Spreads 3 & 4, delivering approximately 200 km of pipeline construction near Prince George and Vanderhoof, including 123 km (Spread 3) and 74 km (Spread 4).

MacroSpiecapag, a joint venture between Canada’s Macro Enterprises Inc. and France/Italy-based Spiecapag (a subsidiary of VINCI Group), a global pipeline specialist, was responsible for Spreads 5 & 8, including mechanical works and crossings in complex terrain.

Pacific Atlantic Pipeline Construction Inc. (PAPC), a Canadian subsidiary of Italy’s Bonatti Group with over 75 years of global pipeline experience, was initially selected as a prime contractor for multiple spreads (covering over one-third of the pipeline length, including Spreads 5, 6, and 7), responsible for clearing, grading, pipe installation, welding, backfilling, and camp services. Its contract was terminated around 2022 due to performance issues.

In parallel, TC Energy conditionally awarded contracts worth $620 million to Indigenous businesses in British Columbia for right-of-way clearing, medical services, security, and camp management, creating substantial employment opportunities for local communities.

November 2023: TC Energy announced the mechanical completion of the entire 670-kilometre Coastal GasLink pipeline from Dawson Creek to Kitimat, paving the way for natural gas exports to Asia.

2. Major Breakthroughs in LNG Canada Liquefaction Facility Construction

April 2018: The Fluor + JGC consortium was awarded the Phase I EPC (Engineering, Procurement, and Construction) contract valued at approximately $14 billion. The project is designed for four LNG trains with a total annual capacity of 28 million tonnes, with Phase I consisting of two trains delivering 14 million tonnes per annum.

2021–2023: COOEC (Offshore Oil Engineering Co., Ltd.), a subsidiary of CNOOC, completed and delivered core process modules from its Qingdao yard, with over 215 modules fully installed by July 2023.

2025: Train 1 commenced production on June 22 and loaded its first LNG cargo globally on July 1. Train 2 entered production in November and was fully handed over on December 1, marking substantial completion of Phase I. JGC and Fluor announced successful delivery of Train 2 including all constructed areas. The LNG Canada facility includes a natural gas receiving and liquefaction plant, a marine berth for LNG carriers, a tug berth, LNG loading lines, LNG processing units, storage tanks, a rail yard, a water treatment plant, and flare stacks.

Kitimat Industrial Cluster: Diversified Synergy for a Low-Carbon LNG Hub

Beyond LNG Canada, Kitimat is evolving into a diversified LNG industrial cluster. A key complementary development is the Cedar LNG project, majority-owned and led by the Haisla Nation, the local Indigenous government.

“The selection of our construction teams represents a significant milestone for the Coastal GasLink project,” said Rick Gateman, President of Coastal GasLink Pipeline. “This project will generate extensive employment opportunities for Indigenous communities, local skilled workers, and businesses across northern British Columbia. Through the LNG Canada liquefaction facility in Kitimat, our pipeline will deliver abundant northeast British Columbia natural gas to high-value international markets, allowing residents of this province and all Canadians to benefit more fully from the sustainable development of our valuable natural gas resources.”

February 13, 2022: Cedar LNG signed a FEED contract with Samsung Heavy Industries and U.S.-based engineering firm Black & Veatch for the development of a floating liquefied natural gas (FLNG) facility.

December 29, 2023: A consortium of Samsung Heavy Industries and Black & Veatch signed the construction contract for Cedar FLNG, valued at approximately $1.5 billion.

Under the agreement, Samsung Heavy Industries will integrate the FLNG topside modules and undertake construction of the FLNG hull and LNG safety systems, while Black & Veatch will lead the design and fabrication of the topside modules. Front-end engineering and design work was completed within the same year.

Black & Veatch, a global leader in engineering, consulting, and construction, stated: “Together with Samsung Heavy Industries, we completed the Pre-FEED study and will design and fabricate the topside modules utilizing our patented PRICO® Liquefaction Process.”

Barring any delays, Cedar LNG is on track to commence production in 2027.

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