TC Energy inks new deals for GasLink expansion

March 25 (Reuters) - TC Energy TRP.TO said on Wednesday that its Coastal GasLink pipeline project has signed commercial agreements with LNG Canada to advance the project's second phase.

The agreements mark a key milestone for Coastal GasLink Phase 2, which still requires a final investment decision by LNG Canada and its joint venture participants, along with approvals from Coastal GasLink.

These agreements create a commercial framework that advances LNG Canada toward FID by supporting front-end engineering and design, as well as subsequent execution activities.

Earlier this week, TC Energy CEO François Poirier said that the disruption to global liquefied natural gas supplies ‌caused by the Iran war makes it more likely that a second stage of Canada's massive LNG Canada facility will be built.

The parties will now further develop firm cost and schedule estimates for Coastal GasLink Phase 2, which, if approved, would be built under a new execution model involving both LNG Canada and Coastal GasLink.

"Doubling the transmission of natural gas through the existing pipeline will help further strengthen Canada's role as a reliable supplier to global LNG markets," said Poirier.

Under the agreements, LNG Canada will lead project construction as CGL Phase 2 execution manager and CGL will provide LNG Canada with technical advisory services.

Coastal GasLink connects gas fields in northwestern British Columbia with the Shell-led LNG Canada project.