LNG Canada hits pipeline problem

Canadian export project buffeted by hitches in its Coastal GasLink feedstock provision

Pipeline companies have had a tough time expanding capacity to export Western Canadian oil to market over the past decade. And the problems have now spread to Canadian midstreamer TC Energy’s under-construction Coastal GasLink pipeline, intended to ship gas to LNG Canada’s export facility on the west coast. Cost overruns and delays have led to a commercial dispute between TC Energy and LNG Canada, with TC Energy threatening in July to intentionally delay construction if the Shell-led partnership—which also includes Malaysia’s Petronas, Chinese NOC Petrochina, Japan’s Mitsubishi and South Korea’s Kogas—does not agree to escalating project costs being rolled into future pipeline tolls. And on