TransCanada to Construct Coastal GasLink Pipeline Project
02 October 2018 - 10:00PM
News Release – TransCanada Corporation (TSX:TRP) (NYSE:TRP)
(TransCanada) announced today that it will proceed with
construction of the Coastal GasLink pipeline project (Coastal
GasLink) after a decision to sanction the LNG Canada natural gas
liquefaction facility in Kitimat, British Columbia (B.C.) was
announced earlier today by the joint venture participants of LNG
Canada, a consortium comprised of Shell, PETRONAS, PetroChina,
Mitsubishi Corporation and KOGAS (the LNG Canada Participants).
“Today’s announcement signifies an important step forward for
Coastal GasLink as well as for the province of B.C. and the
country,” said Russ Girling, TransCanada’s president and chief
executive officer. “The magnitude of the work undertaken over the
past six years has been extensive. It demonstrates the commitment
of our teams, our partners, B.C. communities and Indigenous groups
to work together toward a single goal of fostering an LNG industry
off Canada’s West Coast that will help maximize the value of our
important natural gas resources in a sustainable and responsible
way.”
Coastal GasLink is a 670-kilometre (420 mile) pipeline designed
to transport natural gas from the Montney gas-producing region near
Dawson Creek, B.C. to the LNG Canada facility in Kitimat. The
pipeline will have an initial capacity of approximately 2.1 billion
cubic feet per day (Bcf/day) with the potential for expansion of up
to approximately 5 Bcf/day. Construction activities are expected to
begin in early 2019 with a planned in-service date in 2023.
The estimated Cdn$6.2 billion project is underpinned by 25-year
transportation service agreements (with additional renewal
provisions) entered into with the LNG Canada Participants and
includes pre-development costs to date of approximately $470
million. The majority of the spend on construction will occur in
2020 and 2021. Subject to terms and conditions, differences between
the estimated capital cost and final cost of the project will be
recovered in future pipeline tolls. As part of the funding plan,
TransCanada intends to explore joint venture partners and project
financing for Coastal GasLink and has retained RBC Capital Markets
as advisors.
“Once constructed, Coastal GasLink will become a critical
component of British Columbia’s natural gas pipeline
infrastructure, connecting our abundant, low-cost natural gas
resources to global markets,” added Girling. “Solid underlying
market fundamentals, combined with robust commercial support for
the project, position us to prudently fund Coastal GasLink over its
multi-year construction along with our existing $28 billion
near-term capital program in a manner consistent with our
long-established strong financial profile.”
The Coastal GasLink project was first proposed in 2012 after
TransCanada was selected as LNG Canada’s pipeline partner of choice
to design, build, own and operate the pipeline system. Since then,
the Coastal GasLink team has completed significant project work and
successfully achieved key milestones through its extensive
environmental and field studies, regulatory approvals, and
consultation and engagement programs with local communities and
Indigenous groups in the design and planning of the project. The
project received its Environmental Assessment Certificate in 2014,
after submitting an extensive 7,200-page application to the B.C.
Environmental Assessment Office (EAO) and participating in a
thorough public comment period culminating in a robust two-year
environmental and technical review to obtain the permits. Necessary
regulatory permits from the B.C. Oil and Gas Commission (OGC)
followed shortly afterward, providing Coastal GasLink with all the
necessary regulatory permits to proceed with construction.
The Coastal GasLink Pipeline project will employ 2,000-2,500
people during construction and generate approximately $20 million a
year in ongoing property tax benefits to B.C. communities, creating
economic stimulus and additional funds to address community needs
both locally and provincially.
Project Highlights Include:
- The receipt of all necessary major regulatory permits required
to proceed with construction
- Conducting over 441,000 hours of environmental field studies to
assess aquatic habitat, wildlife, terrain, soils, vegetation and
wetlands, atmospheric environment, hydrology, archeological
resources and timber
- Successfully completing all necessary field work in preparation
for construction-related activities along the pipeline
route
- Working directly with Indigenous groups to provide meaningful
opportunities for input in project planning. To date, more than
one-third of all field work completed on the project has been
conducted by Indigenous people
- Confirming approximately $2.8 billion in construction contracts
to the project’s four prime contractors
- Directly awarding $620 million to Indigenous businesses and
contractors for construction activities, with an additional $400
million anticipated to both B.C. northern communities and
Indigenous communities during the construction period, totaling
approximately $1 billion of local spend in the province of
B.C.
- Signing project and community agreements with all 20 elected
Indigenous bands along the pipeline route, confirming strong
support from Indigenous communities across the province
“Our team has demonstrated that we have the knowledge and
expertise to move this important project forward safely and
responsibly, with the full understanding that our success comes
from the close working relationships we have developed with our
Indigenous and local B.C. communities. It is time to build this
pipeline. We are ready to do that and want to express our deepest
gratitude to those communities and First Nations groups who have
supported our project over the past six years,” concluded
Girling.
For more information, please follow us on Twitter
@CoastalGasLink and @TransCanada; and on Facebook and connect with
us on LinkedIn.
About TransCanada
With more than 65 years' experience, TransCanada is a leader in
the responsible development and reliable operation of
North American energy infrastructure including natural gas and
liquids pipelines, power generation and gas storage facilities.
TransCanada operates one of the largest natural gas transmission
networks that extends more than 91,900 kilometres (57,100 miles),
tapping into virtually all major gas supply basins in North
America. TransCanada is a leading provider of gas storage and
related services with 653 billion cubic feet of storage capacity. A
large independent power producer, TransCanada currently owns or has
interests in approximately 6,100 megawatts of power generation in
Canada and the United States. TransCanada is also the developer and
operator of one of North America’s leading liquids pipeline systems
that extends approximately 4,900 kilometres (3,000 miles),
connecting growing continental oil supplies to key markets and
refineries. TransCanada’s common shares trade on the Toronto and
New York stock exchanges under the symbol TRP. Visit
TransCanada.com to learn more, or connect with us on
social media.
FORWARD-LOOKING INFORMATION
This publication contains certain information that is
forward-looking and is subject to important risks and uncertainties
(such statements are usually accompanied by words such as
"anticipate", "expect", "believe", "may", "will", "should",
"estimate", "intend" or other similar words). Forward-looking
statements in this document are intended to provide TransCanada
security holders and potential investors with information regarding
TransCanada and its subsidiaries, including management's assessment
of TransCanada's and its subsidiaries' future plans and financial
outlook. All forward-looking statements reflect TransCanada's
beliefs and assumptions based on information available at the time
the statements were made and as such are not guarantees of future
performance. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it
is expressed in this news release, and not to use future-oriented
information or financial outlooks for anything other than their
intended purpose. TransCanada undertakes no obligation to update or
revise any forward-looking information except as required by law.
For additional information on the assumptions made, and the risks
and uncertainties which could cause actual results to differ from
the anticipated results, refer to the Quarterly Report to
Shareholders dated August 2, 2018 and 2017 Annual Report filed
under TransCanada's profile on SEDAR at www.sedar.com and with the
U.S. Securities and Exchange Commission at www.sec.gov.
Media Inquiries:Jacquelynn Benson403.920.5742
or 800.608.7859
TransCanada Investor & Analyst
Inquiries:David Moneta / Duane Alexander403.920.7911 or
800.361.6522
TC Energy (TSX:TRP)
Historical Stock Chart
From Mar 2024 to Apr 2024
TC Energy (TSX:TRP)
Historical Stock Chart
From Apr 2023 to Apr 2024