Canada's National Energy Board said on Friday that TC Energy Corp's proposed 416-miles Coastal GasLink natural gas pipeline to supply the LNG Canada project in northern British Columbia is not subject to federal regulation.
According to the board’s decision, the company will not have to submit a new application for approval and cuts the risk of extra regulatory scrutiny delaying construction. The pipeline will run from Dawson Creek in the northeast of the province to the proposed LNG facility near Kitimat on the Pacific coast.
"Coastal GasLink is an integral part of LNG Canada and pipeline development is key for the timing of the project coming online," Wood Mackenzie analyst Dulles Wang said. "That (pipeline development) has always been viewed as one of the biggest risk factors and this decision clears that up."