LNG Canada selects Tecnicas Reunidas for Coastal GasLink Phase 2

Shell-operated LNG Canada has selected Spanish firm Tecnicas Reunidas for Phase 2 of the project’s Coastal GasLink, the engineering and construction company announced on October 19.

Phase 2 involves the development of five additional compressor stations as well as completing modifications to existing and planned facilities along the pipeline route.

Capacity on the pipeline will be almost doubled as a result of the five new compressor stations. Currently, the pipeline is capable of transporting about 2.1bn cubic feet (59.5mn cubic metres). 

The contract for engineering, procurement, and construction management services is valued at EUR 200mn ($224.6mn) with work expected to last for four years. 

The pipeline is operated by TC Energy and extends for 670 km from Dawson Creek in northeastern, British Columbia to the LNG Canada facility in Kitimat, which is about 700 km north of Vancouver.

It marks the latest development for LNG Canada, which took a positive final investment decision (FID) on Phase 2 on September 29. The second phase will double capacity at Canada’s flagship project, increasing it from 14mn tonnes per year (tpy) to 28mn tpy with the addition of two more liquefaction units.

Tecnicas Reunidas also carried out work on Phase 1 of the project providing consulting and engineering services through the front-end engineering design phase. The Madrid-headquartered company has worked on over 35 large compression projects around the world spanning over 30,000 km of oil and gas pipelines.

Canada is in the midst of a major push to develop large-scale energy export projects as it seeks to build new trade relationships following tariff threats by US President Donald Trump. 

LNG Canada shipped the country’s first LNG cargo in June 2025 to South Korea. In June, the facility exported its 100th cargo.