TransCanada has given a C$526m ($408.5m) contract to Aecon Group and Robert B. Somerville for the construction of Spreads 3 and 4 of the Coastal GasLink Pipeline project in British Columbia, Canada.
The Coastal GasLink Pipeline contract has been won by the 50:50 joint venture between Aecon and Robert B. Somerville, known as SA Energy Group.
The Coastal GasLink Pipeline project is a 670km gas pipeline, which will transport natural gas sourced from the Montney gas-producing region near Dawson Creek to the $31bn LNG Canada export facility that has been proposed to be built in Kitimat, British Columbia.
The LNG Canada export facility is being developed by a joint venture company formed by Shell, Petronas, PetroChina, Mitsubishi and KOGAS.
According to Aecon, the scope of the Coastal GasLink Pipeline contract includes construction of 123km of pipeline for Spread 3 and 74km of pipeline for Spread 4, northeast of Prince George.
Aecon Group president and CEO Jean-Louis Servranckx said: “This award demonstrates SA Energy Group’s recognized reputation as a preeminent partner for major pipeline construction and Aecon’s proven capabilities delivering a diverse range of projects through our Industrial segment.”
The Coastal GasLink Pipeline, which is expected to see an investment of C$6.2bn ($4.81bn), will initially have a capacity of nearly 2.1 billion cubic feet per day (Bcf/day). It will have scope for future expansion of up to around 5 Bcf/day.
Aecon revealed that preliminary works for both Spreads 3 and 4 will begin in mid-2019, with construction slated for July 2020. The company expects substantial completion of the work by November 2021 with final completion of the construction expected by the end of 2022.
The contract to SA Energy Group follows the announcement of TransCanada to move ahead with construction of the Coastal GasLink Pipeline, which in turn, followed the final investment decision (FID) taken by Shell and its partners for the LNG Canada export facility.
TransCanada president and CEO Russ Girling said: “Once constructed, Coastal GasLink will become a critical component of British Columbia’s natural gas pipeline infrastructure, connecting our abundant, low-cost natural gas resources to global markets.
“Solid underlying market fundamentals, combined with robust commercial support for the project, position us to prudently fund Coastal GasLink over its multi-year construction along with our existing $28 billion near-term capital program in a manner consistent with our long-established strong financial profile.”