TC Energy has entered new commercial agreements with LNG Canada aimed at progressing the second phase of the Coastal GasLink pipeline expansion in British Columbia.

The deals establish the commercial structure needed to move Phase 2 of the project closer to a final investment decision by LNG Canada and its partners, while also requiring internal approvals from Coastal GasLink. The framework supports detailed engineering work and planning required before construction can begin.

According to TC Energy, the next stage will focus on refining cost estimates and timelines for the proposed expansion. If approved, the project will be executed under a new arrangement where LNG Canada takes the lead role in construction management, while Coastal GasLink provides technical support and advisory services.

TC Energy’s Chief Executive, François Poirier, recently noted that supply disruptions in the global liquefied natural gas market have increased the likelihood of further expansion at Canada’s major LNG export facilities.

He added that expanding gas transmission capacity through the existing pipeline would strengthen Canada’s position as a dependable supplier to international LNG markets.

The Coastal GasLink pipeline currently transports natural gas from fields in northwestern British Columbia to the LNG Canada export terminal, which is led by Shell and its joint venture partners. The proposed second phase would effectively double the volume of gas moving through the system if the project receives full approval.