ATCO plans to build $2B natural gas pipeline in Alberta

Key Takeaways

• The project consists of building approximately 200 kilometres of high-pressure natural gas pipeline and related control and compression facilities that will run from Peers, Alberta, to the northeast Edmonton area.
• The project is expected to create thousands of direct jobs during construction and enable more than $20 billion of investment and associated employment in Alberta by customers, including Dow’s Path2Zero project, while providing additional market access to producers.
• The project plans to be on-stream in Q4 2027 with construction expected to commence in 2026, subject to regulatory and company approvals.

The Whole Story:

ATCO is embarking on its largest energy project ever—a $2-billion natural gas pipeline in Alberta. 

The Yellowhead Mainline project will expand the capacity and enhance the efficiency of the province’s natural gas network, connecting natural gas producers to key markets and delivering the energy for Alberta’s growing population.  

“As Alberta’s energy demand continues to grow, the Yellowhead Mainline will play a crucial role in reinforcing Alberta’s energy infrastructure and enhancing access to reliable energy from one of the cleanest sources of natural gas on the planet,” said Wayne Stensby, chief operating officer, ATCO Energy Systems. “Canadian Utilities has been delivering safe, reliable and affordable energy for more than 100 years and we are excited to embark on this new landmark infrastructure project which we expect to contribute to a prosperous future for Albertans in the decades to come.”

The project is expected to create approximately 2,000 jobs during construction and will provide gas supply for the more than $20 billion of investment and associated employment in Alberta, including the Dow Fort Saskatchewan Path2Zero project.

“Dow appreciates the partnership with ATCO to supply Dow’s Path2Zero project. Together these projects will have a profound positive impact on communities, creating jobs and economic opportunity for Alberta,” said Diego Ordonez, president, Dow Canada. “Collaboration with government officials, the community of Fort Saskatchewan, our Indigenous neighbors, and the host of partner companies such as ATCO have been key to enabling Dow’s investment to move forward.”

The pipeline project consists of building approximately 200 kilometres of high-pressure natural gas pipeline and related control and compression facilities that will run from Peers, Alta., to the northeast Edmonton area.

Total investment for the project is expected to exceed $2 billion, with more precise cost estimation subject to further refinement of project scope, route and detailed engineering. The expansion is expected to have the capability to deliver about 1 billion cubic feet per day of incremental natural gas delivery capacity and is planned to be on-stream in Q4 2027 with construction expected to commence in 2026, subject to regulatory and company approvals.