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TC Energy has completed the construction of the Coastal Gaslink pipeline that will link to Canada’s first LNG production facility.
The Coastal Gaslink, like any pipeline project in Canada, spurred a lot of opposition from anti-oil and gas activists but they could not suspend the construction of the infrastructure, which should help put Canada on the global LNG stage at a time of elevated demand.
The pipeline will feed gas from Dawson Creek, near the border of British Columbia with Alberta, to the LNG Canada plant on BC’s coast.
LNG Canada is also currently under construction, with first LNG expected to be delivered from the facility in 2025. Co-owned by Shell, Petronas, PetroChina, and Mitsubishi, the facility will initially have two liquefaction trains, each with a capacity of 6.5 million tons of LNG with the prospect of adding another two trains at a later stage. This will bring the total capacity of the plant in Kitimat, in northern British Columbia, to as much as 26 million tons annually.
“Based on everything that we’re hearing and seeing, LNG Canada may start taking some test gas volumes by the middle of next year,” the managing director of analytics company RBN Energy told Bloomberg.
“There’s a palpable sense in the gas business that we’re going to actually have a real, viable outlet for Canadian gas exports other than the United States,” Martin King also said.
Canada’s Prime Minister Justin Trudeau last year demonstrated an absence of any enthusiasm for such developments, saying during a meeting with Germany’s Olaf Scholz that there was no business case for LNG exports from Canada.
Apparently, however, both the owners of LNG Canada and the German chancellor see things differently. The former are moving on with the construction work, while the latter said this weekend during a visit in Nigeria that Germany is interested in funding the expansion of the country’s LNG export capacity.
By Irina Slav for Oilprice.com
Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.