TC Energy raises expected cost of Coastal GasLink project to $14.5 billion

TC Vitality Corp. raised its estimate for the price of its Coastal GasLink mission to $14.5 billion, up from an earlier estimate of $11.2 billion.

The corporate says the pipeline mission continues to face vital price pressures, together with a difficult labor market and contractor underperformance and disputes, in addition to drought circumstances and erosion and sediment management points.

TC Vitality says the brand new estimate excludes potential price recoveries and consists of contingencies for sure elements that could be past its management.

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The corporate goals for mechanical completion of the mission by the top of 2023, with commissioning and clean-up work persevering with in 2024 and 2025.

Nevertheless, it says a complete price and schedule threat evaluation estimates that if development stretches properly into 2024, it may add as much as a further $1.2 billion to the mission’s price.

TC Vitality says its total 2023 capital spending plan has additionally been revised to between $11.5 billion to $12.0 billion, in comparison with an earlier estimate of $9.5 billion.