WINNIPEG, Manitoba, Dec 11 Reuters Coastal GasLink, a Canadian natural gas pipeline partnership operated by TC Energy, is seeking C1.2 billion 737 million from one of its main contractors for construction delays and may be liable for a similar amount if an arbitrator rules against it, court documents showed ahead of a hearing this month.

Construction of C14.5 billion Coastal GasLink CGL, which TC began planning in 2012, finished in October at more than double its original budget. Private equity firm KKR Co and Alberta pension manager AIMco jointly own 65 of the limited partnership and TC owns the remaining 35.

The dispute over the project that will supply Canada39;s first liquefied natural gas export facility around 2025 highlights the extreme difficulties operators face in building Canadian pipelines. The Canadian governmentowned Trans Mountain pipeline expansion, which aims to boost oil exports, has also faced delays and soaring costs.

The 670km 416mile CGL through British Columbia39;s Rocky Mountains to the Pacific coast was delayed by mudslides, a sixmonth pandemic work stoppage, sometimes violent protests and steep terrain that forced TC to use ski lifts to transport pipe.

CGL also terminated contractor Pacific Atlantic Pipeline Construction39;s PAPC contract last year alleging poor performance and is claiming C1.2billion for the cost of finding new contractors, Blaine Trout, TC39;s vicepresident in charge of CGL, said in court on Nov. 17.

The two parties have…