Coastal GasLink seeking $1.2B from contractor; alleges poor performance

CALGARY – The company behind the Coastal GasLink pipeline is pursuing $1.2 billion in cost recoveries from one of its contractors.

TC Energy Corp. terminated a contract with Pacific Atlantic Pipeline Construction last year, alleging poor performance. The company was one of the main contractors involved in the building of Coastal GasLink.

The 670-kilometre pipeline was completed in October, but its construction was plagued with difficulties including challenging terrain, bad weather, the COVID-19 pandemic and protests by environmental and Indigenous groups.

By the time the pipeline was finished, its estimated construction cost had ballooned from $6.6 billion to $14.5 billion.

TC Energy says Coastal GasLink is committed to enforcing its contractual rights and is actively pursuing cost recoveries.

The dispute between Coastal GasLink and its contractor is currently before an Alberta court.

This report by The Canadian Press was first published Dec. 11, 2023.

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