TC Energy Corp. has again revised upward the expected cost of the Coastal GasLink (CGL) natural gas pipeline in Western Canada, citing challenges on multiple fronts.

TC now expects the project to cost C$14.5 ($10.9 billion), up from C$11.2 billion ($8.4 billion) forecast in its third quarter 2022 earnings report.

“The project continues to face material cost pressures that include challenging conditions in the Western Canadian labor market,” management said in an update on Feb. 1.

TC also cited skilled labor shortages, contractor underperformance and disputes, as well as unexpected events including drought conditions, erosion and sediment control challenges.

The roughly 416-mile, 2.1 Bcf/d pipeline would be used to connect gas supply from the Western Canadian...