TC Energy Corp. said the pandemic continues to inflict headaches on the biggest project under construction, the Coastal GasLink supply line  designed to feed liquefied natural gas (LNG) supply for the Royal Dutch Shell plc-led LNG Canada project in northern British Columbia.

“We continue to expect project costs to increase significantly along with a delay to project completion,” said management. It had warned in February of coronavirus-related delays.

“Coastal GasLink will continue to mitigate cost increases and schedule deferrals and is working with LNG Canada on establishing a revised project plan and budget. Incremental costs will be included in the final pipeline tolls.”

Pandemic issues also continue to affect a Mexican project, Villa de Reyes, but it should be...