CGL pipeline and LNG Canada will double gas pipeline and LNG capacity (Canada)

Canada’s infrastructure group TC Energy has signed agreements with LNG Canada to advance Phase 2 of the Coastal GasLink (CGL) gas pipeline expansion, which remains subject to a Final Investment Decision (FID) by LNG Canada and approvals by CGL, the company that owns the pipeline (TC Energy press release, 25/03/2026).

TC Energy completed the original Coastal GasLink project, with commercial operations beginning in 2024. The 2.1 bcf/d (59 mcm/d or 21.5 bcm/year) pipeline transports natural gas from northeastern British Columbia (B.C) to the LNG Canada facility in Kitimat, B.C. Doubling pipeline capacity to over 4 bcf/d (43 bcm/year) would help boost exports from the LNG Canada project. 

The LNG Canada facility, also located in British Columbia, has a capacity of 14 Mt/year (19 bcm/year). The consortium behind the project includes Shell, Petronas, PetroChina, Mitsubishi, and Kogas. The project shipped Canada’s first-ever LNG export cargo to Asia in 2025 (KEI, 10/11/2025). The project’s Phase 2, which the federal government aims to accelerate, would double exports, bringing them to 28 Mt/year (around 39 bcm/year).

Both LNG Canada Phase 2 and CGL Phase 2 are subject to their own FID, but are mutually dependent: neither project can proceed without the other. The agreements create a commercial framework that jointly advances both LNG Canada Phase 2 and CGL Phase 2 toward their respective FIDs, by supporting front-end engineering and design, as well as subsequent execution activities. The parties will now further develop firm cost and schedule estimates for Coastal GasLink Phase 2, which, if approved, would be built under a new execution model involving both LNG Canada and Coastal GasLink.