LNG Canada, a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS, has appointed Técnicas Reunidas Canada E&C to deliver front-end engineering design (FEED) services for Phase 2 of Coastal GasLink in British Columbia on Canada’s west coast. The contract marks a key step in advancing planning activities for the proposed expansion of Coastal GasLink, with FEED work focused on evaluating additional compression facilities and supporting the broader development framework. LNG Canada is coordinating closely with Coastal GasLink under an integrated commercial model as it progresses Phase 2 considerations. If sanctioned, the second phase would effectively double the natural gas transport capacity of Coastal GasLink while leveraging the existing pipeline infrastructure.
The Coastal GasLink system, owned and operated by TC Energy and its partners, was originally designed with scalability in mind, capable of eventually delivering up to 5 billion cubic feet per day (bcf/d) of natural gas compared with its current capacity of 2.1 bcf/d. The proposed Phase 2 of Coastal GasLink includes plans for five new compressor stations, each equipped with 30MW compression turbines, alongside modifications to both existing and planned facilities along the route. These upgrades are intended to enable the increased throughput while maintaining operational efficiency across the Coastal GasLink system.
Under the awarded scope, Técnicas Reunidas will undertake initial engineering design, project planning, and detailed assessments of potential costs and scope related to the facilities work. The FEED process is expected to provide LNG Canada with the technical and economic analysis required as it evaluates pathways toward a potential final investment decision (FID) for Coastal GasLink Phase 2. The contract builds on earlier collaboration, as Técnicas Reunidas had previously delivered consulting and engineering services during a prior phase of the project.
This latest award further reinforces Técnicas Reunidas’ track record in midstream infrastructure, encompassing approximately 30,000 km of oil and gas pipelines and more than 35 large compression projects globally. It also aligns with the company’s broader strategy to expand its footprint in North America, identified as a central pillar of its Strategic Plan. The development comes shortly after Técnicas Reunidas secured a design engineering services contract for a natural gas liquefaction and export facility on the Texas Gulf Coast. Looking ahead, the company has outlined a pipeline of prospective opportunities in the region valued at €28 billion, including around a dozen combined-cycle power plants aimed at supporting the rising energy demand driven by the rapid expansion of large data centers. As planning progresses, Coastal GasLink remains a central component of LNG Canada’s long-term infrastructure ambitions.
