Camp at section 6. (Lakes District news file photo)

Coastal GasLink terminates another PAPC contract citing “ongoing problems”

The prime contractor loses Section 6 shortly after losing Section 5

Coastal GasLink (CGL) has replaced one of its prime contractors, in favour of a company with a partnership with a local Indigenous-led company, along a section of its natural gas pipeline underway since 2019, from northeastern B.C. to the LNG Canada liquefied natural gas plant being built in Kitimat.

Natasha Westover from CGL, told Lakes District News that CGL had terminated Pacific Atlantic Pipeline Construction (PAPC) as the prime contractor for Section 6, an 85 kilometres long section running from south of Burns Lake west to south of Houston, due to numerous ongoing problems.

“This project is one of the largest and most complex projects in Canadian history, and we are bringing in contractors that can safely mobilize the people and equipment to complete the project,” she said.

Michels Canada, a diversified utility contractor in North America, will be taking over as prime contractor for Section 6 in partnership with local Indigenous-led companies. This will be the fourth Indigenous collaboration responsible for major pipeline construction on the project following the Ledcor-Haisla, Nadleh-Macro and OJ Pipelines partnerships, explained Westover.

“Coastal GasLink will work directly with Michels Canada to transfer subcontracts, from the outgoing prime contractor to them. All of our existing regulatory permits and associated conditions and commitments will remain intact and continue to be followed,” she assured.

This is the fifth switch in prime contractors managing the pipeline sections since construction first began.

Pacific Atlantic took over from Macro Spiecapag Joint Venture on Section 5 which runs from north of Vanderhoof to south of Burns Lake in the fall of 2020 and, was replaced earlier this year by Macro Pipelines.

The first prime contractor change occurred in the spring of 2021 on Section 8, the section that ends at the LNG Canada plant in Kitimat.

There have been no contractor changes for Section 1, west of Dawson Creek and Section 4, north of Prince George, and as of CGL’s May 2022 update, both sections completed the pipe installation a 100 per cent this May.

“Over 5,000 women and men will be building Coastal GasLink over the Summer and Fall 2022 construction season as we remain on track to bring the pipeline into service in 2023,” said Westover.

With files from Rod Link