ATCO Begins Construction on $2.9 Billion Yellowhead Pipeline

The Alberta Utilities Commission approved the construction of the Yellowhead natural gas pipeline, a $2.9 billion project led by ATCO and its subsidiary, Canadian Utilities Ltd. The 235-kilometre transmission line will run from the Peers area in west-central Alberta to the Fort Saskatchewan region northeast of Edmonton, where it will serve gas processing facilities and petrochemical plants.

Construction is beginning immediately, with workforce levels expected to reach 2,000 crew members by October. The project includes one compressor station and is targeted to be in service by November 2027. Once operational, the pipeline will deliver over 1.1 billion cubic feet of natural gas per day, a volume equivalent to the peak daily delivery of Alberta's entire electricity system.

Jason Sharpe, Chief Operating Officer of ATCO, stated that the infrastructure is expected to contribute approximately $3.9 billion to Alberta's GDP by meeting industrial demand and enabling associated projects. All major contracts for materials, supply, and compressors have already been awarded.