TC Energy Advances Coastal GasLink Expansion After LNG Canada FID
TC Energy is advancing the second phase of its Coastal GasLink pipeline, nearly doubling its capacity to 4.2 billion cubic feet per day. The expansion, expected to start in 2027 and complete in the early 2030s, will use existing infrastructure. LNG Canada, a joint venture, will manage construction, while TC Energy provides support. The project aims to increase LNG exports from British Columbia and create jobs.
How this was made
The 30-second read
Why it matters
The Phase 2 decision signals a long‑term growth catalyst for TC Energy, with potential earnings uplift as LNG export volumes rise.
Market read
The announcement adds a material growth story for TC Energy and the broader North American gas sector.
What to watch
Regulatory or Indigenous partnership delays could postpone the project timeline.
Background
TC Energy (TRP) is a major North American energy infrastructure company; LNG Canada is a joint‑venture aiming to supply Asian markets.
Ticker impact
TC Energy announced it will proceed with Phase 2 of the Coastal GasLink pipeline after LNG Canada’s final investment decision, expanding capacity and adding compression stations.
likely upward pressure as investors price in additional long‑term cash flow from expanded LNG export capacity.
The project adds significant capacity without new right‑of‑way, reducing construction risk and enhancing TC Energy's exposure to growing LNG demand.
Market effects
strengthens North American LNG export infrastructure, benefiting upstream gas producers and related service firms.
boosts Western Canadian gas market outlook and may lift regional energy equities.
supports global LNG supply growth, potentially influencing Asian gas pricing.
Counterpoint
If construction costs overrun or demand for LNG weakens, the expansion could strain cash flow.
Key entities
- companyTC Energy
Operator and technical supporter of the Coastal GasLink pipeline.
- joint ventureLNG Canada
Owner of the Kitimat LNG export terminal.
