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

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Long-term relationships are the name of the game when it comes to the province's resource projects, according to Premier David Eby. Legislative bureau chief Keith Baldrey has more on how Eby plans to keep everyone happy with contentious projects like the Coastal GasLink Pipeline and LNG – Jan 25, 2023

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.

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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.

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Click to play video: 'Coastal GasLink fined for issues related to pipeline construction'
Coastal GasLink fined for issues related to pipeline construction

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