Coastal GasLink announces commercial in-service

Coastal GasLink LP (CGL) has executed a commercial agreement with LNG Canada and CGL customers that declares pipeline commercial in-service for the pipeline, allowing for the collection of tolls from customers retroactive to Oct. 1, 2024.

As part of the agreement, TC Energy will receive a one-time payment of $199 million, in recognition of the completion of certain work and settlement of final costs. In line with the terms of the agreement, this payment is expected to be received three months after LNGC declares in-service, but no later than Dec. 15, 2025.

The final project costs remain within the approximately $14.5 billion cost estimate. Coastal GasLink LP continues to pursue cost recoveries from contractors through various proceedings, and while we are unable to quantify with any certainty, expect these efforts are likely to result in net recoveries. This is another important milestone in support of LNG Canada’s commissioning and safe start-up activities. As LNG Canada has indicated, it remains on track to deliver first cargoes by the middle of 2025.

Read more from TC Energy's Investor Day news release.