According to Coastal GasLink, construction work on the pipeline is 70% complete.
Canada's TC Energy expects Coastal Gaslink pipeline project to cost $11.2 billion, double last year's estimate , which were around $6.6 billion.
The pipeline will eventually transport natural gas from operations in northeastern British Columbia to the port of Kitimat on the Pacific coast.
TC Energy President and CEO Francois Poirier expects the 670-kilometre project, which is 70% complete, to be operational by the end of 2023.
He says TC Energy has also reached a milestone in signing agreements in its dispute with LNG Canada over Coastal Gaslink's costs and schedule.
Together with LNG Canada, this project will provide the first direct link for Canadian natural gas to reach global liquefied natural gas markets, he said.
LNG Canada is the company responsible for constructing and operating a natural gas liquefaction facility and a port terminal for the export of liquefied natural gas (LNG) in the district of Kitimat, British Columbia.< /p>
François Poirier says he has confidence in the future of the project, mentioning in passing the increase in demand for natural gas caused by the invasion of Russia in Ukraine. It predicts that global demand for liquefied natural gas will increase from 50 billion cubic feet per day to 75 billion cubic feet by 2030.
The CEO of TC Énergie, François Poirier, foresees an increase in demand for natural gas, particularly due to the war in Ukraine which is destabilizing energy supply markets.
Growth will be supported in particular by fears of energy supply and by the reorientation of the type of energy used, he explains.
However, analyst Robert Kwan of RBC Capital Markets questions these estimates and wonders if the profits from the pipeline will be more modest than expected, profits that were already quite low to begin with.
< p class="e-p">TC Energy's project has faced several environmental and political obstacles in recent years.
Not only has the project had to deal with challenges related to the pandemic, but construction of the pipeline has been slowed by the series of protests by members of the Wet'suwet'en First Nation and other Indigenous groups as well as environmental activists.
The government of British Columbia also put a spoke in the wheels of the project this year by distributing fines in connection with the non-respect of certain measures for the protection of the environment. environment.
François Poirier specifies that TC Energy has established agreements with 20 First Nations band councils and signed purchase options to sell 10% of the project to two Aboriginal groups representing 16 of the 20 communities.
With information from The Canadian Press