TC Energy Corp. says it expects what it calls a material increase in the cost of its Coastal GasLink pipeline project.
The company says it continues to experience significant cost pressures in Western Canada related to labor costs and skilled labor shortages, along with contractor underperformance and disputes.
TC Energy says the project has also been hurt by other unexpected events, including drought conditions, and erosion and sediment control challenges.
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It says it expects to provide an updated capital cost estimate early next year that will incorporate recent developments.
In July, the company said it expected the cost of the project spanning northern British Columbia to rise to $11.2 billion, up from an earlier estimate of $6.6 billion.
The 670-kilometre pipeline, which aims to transport natural gas through the province to the LNG Canada processing and export facility in Kitimat, BC, is 80 per cent complete.
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