Gas
Técnicas Reunidas secures €200m LNG Canada pipeline contract
Spanish engineering firm Técnicas Reunidas has won a €200m contract to expand the Coastal GasLink pipeline for the LNG Canada export facility.
Key points
- Técnicas Reunidas awarded €200m contract for Coastal GasLink pipeline phase 2.
- LNG Canada partners approved expanding the Kitimat plant capacity to 28 mtpa.
- Project includes five new compression stations and facility modifications.
What happened
According to gasworld reporting, Técnicas Reunidas has secured a €200m ($224.4m) contract to construct the second phase of the natural gas pipeline linking western Canadian gas fields to the LNG Canada export facility in British Columbia. The award follows the final investment decision by the LNG Canada joint venture, which includes Shell, Petronas, PetroChina, Mitsubishi, and Kogas, to double the processing capacity of the Kitimat plant from 14 million tonnes per annum to 28 million tonnes per annum.
The contract will be executed through the Spanish engineering firm's TR Canada E&C subsidiary. The scope of work covers engineering, procurement, and construction management for the second phase of the 670-kilometre Coastal GasLink pipeline. This expansion entails building five new compression stations alongside modifications to existing and planned infrastructure along the route.
What comes next
Operations for the second phase of the LNG facility are scheduled to commence in 2031, gasworld reported. Joint venture participants will offtake production volumes matching their respective equity stakes of 40 percent for Shell, 25 percent for Petronas, 15 percent each for PetroChina and Mitsubishi, and 5 percent for Kogas, with a primary focus on supplying Asian markets. Meanwhile, the Canadian federal government has placed the infrastructure expansion under its Major Projects Office to streamline regulatory alignment as the country seeks to broaden its export destinations beyond the United States.
Why it matters
Global gas markets continue to adjust as producers invest heavily in export infrastructure to capture international demand. While North American Henry Hub spot prices stood at $3.22 per MMBtu on October 14, 2026, according to US Energy Information Administration data provided by CEII, major export projects like Kitimat underline how regional supply connects directly to global pricing dynamics, particularly in Asia. For African energy producers and investors, large-scale LNG expansions in North America highlight the capital intensity and long-term commitments required to bring remote gas reserves to international markets. As African nations seek to develop their own vast gas resources for domestic use and export, navigating complex joint ventures, environmental approvals, and multi-billion-dollar engineering procurement contracts remains a central challenge for policymakers and industry stakeholders alike.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
18.5% of electricity in Canada came from gas in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
