TC Energy is set to receive a one-time payment of $199 million as part of a commercial agreement linked to its Coastal GasLink pipeline project. The announcement was made during the company’s Investor Day on Nov. 19, where executives outlined TC Energy’s strategic vision and growth plans.
The payment follows an agreement with LNG Canada and other Coastal GasLink customers, enabling TC Energy to collect tolls retroactively from Oct. 1, 2024, once the pipeline is operational. The $199 million recognizes the completion of specific work and the settlement of final costs. Coastal GasLink's total project cost remains within its $14.5 billion estimate, despite ongoing efforts to recover costs through legal proceedings with contractors.
TC Energy, which owns and operates the Coastal GasLink pipeline, plays a crucial role in delivering natural gas to LNG Canada’s export terminal in Kitimat, which is on track to ship its first cargo by mid-2025. François Poirier, TC Energy’s President and CEO underscored the importance of the project in meeting North America’s growing demand for reliable, affordable, and sustainable energy.
“With natural gas and electricity projected to drive 75 per cent of the growth in final energy consumption through 2035, TC Energy’s portfolio aligns strategically with this vast opportunity,” Poirier said. He added that the company’s disciplined approach would ensure solid, low-risk growth, supported by its $32 billion capital program.
The Coastal GasLink project has faced both financial and operational hurdles along its construction journey. Among the most notable were fines for non-compliance with waterway protection regulations and a blockade in 2021, led by Witsuwit’en hereditary chief Adam Gagnon, who was later charged with criminal contempt for obstructing access to the worksite near Houston. Amnesty International subsequently declared Gagnon as Canada’s first prisoner of conscience.
