ATCO breaks ground in Alberta on its largest project ever

Key Takeaways:

• Canadian Utilities has commenced construction on the $2.9-billion, 235-kilometre Yellowhead natural gas pipeline between Peers and Fort Saskatchewan.
• The project will deliver 1.1 billion cubic feet of natural gas per day, with 100 percent of its transport capacity fully subscribed prior to regulatory approval.
• Construction is expected to create 2,000 direct jobs, targeting an in-service operational date by late 2027 to unlock $3.9 billion in annual downstream GDP growth.

The Whole Story:

ATCO has officially broken ground on the $2.9-billion Yellowhead Pipeline, marking the start of construction on the largest project in the company’s history.

The 235-kilometre natural gas pipeline will run from Peers, Alberta, to Fort Saskatchewan, delivering 1.1 billion cubic feet of natural gas per day into Alberta’s Industrial Heartland. The additional transportation capacity is designed to resolve regional system constraints while supporting population growth, industrial development, and expanded gas-fired power generation. Commercial demand for the pipeline’s full capacity was secured prior to completing the regulatory review process.

Construction of the pipeline is expected to generate approximately 2,000 direct jobs. Once operational, the energy infrastructure is projected to enable downstream industrial investments that could support an estimated 12,000 construction roles, 20,000 permanent operational jobs, and add $3.9 billion annually to Alberta’s GDP.

“Yellowhead represents a major investment in Alberta’s future and a demonstration of Canadian Utilities’ ability to plan, finance, permit, construct and operate large-scale infrastructure that our customers and economy depend upon,” said Bob Myles, Chief Executive Officer of Canadian Utilities.

Jason Sharpe, Chief Operating Officer of ATCO Energy Systems, emphasized the collaborative development of the project: “As the largest project in our company’s history, Yellowhead represents more than a pipeline… We’re energizing Alberta’s next chapter thanks to the support of our industry partners, suppliers, contractors, Indigenous partners and community leaders.”

The groundbreaking follows formal project approval by the Alberta Utilities Commission (AUC) in July 2026. Pre-construction activities are currently underway, with the pipeline targeted to enter commercial service by late 2027.