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May 5, 2016

TransCanada secures final permits for proposed Coastal GasLink pipeline

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TransCanada Corp. (TRP.TO) says it has secured the final permits needed to start construction and operation of its proposed Coastal GasLink pipeline.

The company said Thursday that the B.C. Oil and Gas Commission issued the last two of 10 permits needed and it now is awaiting a final investment decision from LNG Canada before starting construction.

The 650-kilometre pipeline would link natural gas fields in northeastern British Columbia to LNG Canada's proposed liquefied natural gas export project in Kitimat, B.C.

The Shell-led LNG Canada consortium is expected to make a final investment decision on the natural gas project in late 2016 and, if approved, TransCanada could start pipeline construction next year.

TransCanada says it has approvals from 11 First Nations communities along the length of the proposed pipeline route after securing two more project agreements in January. It said progress is being made with the remaining First Nations groups.

The company expects the pipeline to cost about $4.8 billion and create 2,000 to 2,500 jobs during construction.