Other than cash, a standby letter of credit (LoC) is generally considered the most liquid form of performance security. While beneficiaries generally believe drawing on an LoC should be.
Other than cash, a standby letter of credit LoC is generally considered the most liquid form of performance security. While beneficiaries generally believe drawing on an LoC should be a relatively simple process, many do not understand the extent to which the counterparty could try to stop you. This issue was addressed in Pacific Atlantic Pipeline Construction v. Coastal Gaslink Pipeline Ltd 2023 ABKB 736.
TC Energy and contractor Pacific Atlantic Pipeline Construction are in dispute related to challenging $10.6B Canada Coastal GasLink natural gas pipeline that is nearly complete.
CALGARY The company behind the Coastal GasLink pipeline is pursuing $1.2 billion in cost recoveries from one of its contractors. TC Energy Corp. terminated a contract with Pacific Atlantic Pipeline Construction last year, alleging poor performance.