On Tuesday, TransCanada announced it has conditionally awarded contracts to two joint ventures and two companies to construct the proposed Coastal GasLink Pipeline Project.  TransCanada image.  

Coastal GasLink contracts valued at $2.8 billion

TransCanada announced it has conditionally awarded four contracts in the construction of the Coastal GasLink Pipeline project which, once complete, will transport natural gas from Northeastern British Columbia to the proposed LNG Canada facility in Kitimat, BC.

Surerus Murphy Joint Venture, SA Energy Group, Macro Spiecapag Joint Venture and Pacific Atlantic Pipeline Construction Inc., were awarded contracts for the construction of the 670 Kilometre, $2.8 billion project.

The contracts are conditional, pending a positive final investment decision by the joint venture participants of LNG Canada for the Kitimat facility.

According to TransCanada, the winning contractors have local offices based in the Fort St. John, Vancouver and Calgary areas, as well as internationally.  They have extensive experience in pipeline construction and major infrastructure projects in BC and globally.

TransCanada says they were chosen based on the company’s core principles of safety, environmental stewardship and stakeholder engagement as well as their financial strength, technical design expertise and contract competitiveness.

“The selection of our construction team is an important milestone for the Coastal GasLink project,” said Rick Gateman, president of the Coastal GasLink Pipeline Project.

“Our pipeline, connecting prolific Northeast B.C. gas to high value, international end-use markets via the LNG Canada liquefaction facility in Kitimat, will allow British Columbians and Canadians alike the opportunity to more effectively benefit from the responsible development of our valuable natural gas resources,” said Gateman.

Once complete, Canadian LNG will be shipped to markets in Asia that are currently powered by coal-fired electricity, a significant source of greenhouse gases.

Frank Miles, President and CEO of Macro Enterprises, a BC-based company, said “the economic benefits of this project will serve to provide numerous subcontracting opportunities for local and indigenous businesses, direct employment for over 900 personnel, and growth to the economy with development of new markets for Canadian gas”.

He added “we are proud to be part of this ambitious project”.

The winning contractors will be directly responsible for hiring a projected 2500 workers over the four-year construction period, with special emphasis placed on hiring locally first.  Priority will be given to qualified local and Indigenous businesses in northern BC.

“The project will create significant employment opportunities for Indigenous communities in northern B.C. as well as local skilled labourers and businesses.” said Gateman

To date, Coastal GasLink has spent approximately $60 million locally in northern B.C., including over $3 million on community investment initiatives, education and skills training initiatives.

LNG Canada is a joint venture company comprised of five global energy companies; Shell, Petronas, PetroChina, KOGAS and Mitsubishi Corporation.