North American pipeline company TC Energy Corp (TRP.TO) on Tuesday said it faces another big cost increase of its troubled Coastal GasLink project, as it grapples with problems attracting workers and mountainous terrain that has forced it to move pipe with ski lifts.
First announced in 2018, the 670-km (416-mile) pipeline will transport natural gas to the Shell PLC-led (SHEL.L) LNG Canada facility on the west coast of British Columbia, Canada's first LNG export terminal.
Coastal has faced several construction delays, including COVID-19 disruptions and protests from environmentalists and some First Nations.
TC Energy raised its Coastal cost estimate in July nearly 70% from the initial budget. It now further expects "a material increase" in funding requirements due to rising labor costs and shortages.
TC said it will provide a new cost estimate for Coastal GasLink, previously pegged at C$11.2 billion ($8.27 billion), early next year. TC will increase its asset sales to pay for additional Coastal costs, Chief Financial Officer Joel Hunter said.
[Rod Nicken and Ruhi Soni]