Construction on $2.9 billion Yellowhead natural gas pipeline gets green light from Alberta Utilities Commission
The 235-kilometre pipeline from Peers to Fort Saskatchewan will deliver over 1.1 billion cubic feet of natural gas daily, ramping up to 2,000 crews by October.
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The $2.9-billion Yellowhead natural gas pipeline has been approved by the Alberta Utilities Commission, with shovels in the ground immediately and crews ramping up to 2,000 by October. ATCO Energy Systems, the largest utility in Alberta, received the green light July 21.
The 235-kilometre transmission pipeline runs from the Peers area northeast of Edson to the Fort Saskatchewan area northeast of Edmonton, with one compressor station. The target in-service date is November 2027. Once operational, the pipeline will deliver more than 1.1 billion cubic feet of natural gas to the system per day — roughly the same amount of energy delivered by Alberta's entire electricity system on a peak day.
Jason Sharpe, chief operating officer of ATCO Energy Systems, described it as the company's largest infrastructure project. "This would be our largest pipeline project — actually, the largest project we've completed in our utility group," he said.
The pipeline will create a backbone that improves the flow efficiency of the entire province's system, increasing energy availability by over 10 percent. ATCO's studies estimate a $3.9 billion increase to Alberta's GDP once the pipeline is built, attributed to associated projects that will be developed due to access to that additional energy capacity.
During construction, ATCO expects to invest $24 million and change in local Indigenous businesses, create 775 new jobs at peak construction including nearly 100 Indigenous employees and contractors, and generate an estimated $4.4 million in annual property tax revenue across Grande Prairie County, Saddle Hills County, and the MD of Greenview.
By the numbers
How much natural gas will the Yellowhead pipeline deliver daily?
The Yellowhead pipeline will deliver more than 1.1 billion cubic feet of natural gas per day once operational in November 2027.
How many construction jobs will the Yellowhead pipeline create?
The Yellowhead pipeline project will create 775 new jobs at peak construction, including nearly 100 Indigenous employees and contractors.
What is the total cost of the Yellowhead pipeline?
The Yellowhead natural gas pipeline costs $2.9 billion and was approved by the Alberta Utilities Commission on July 21, 2026.
How much will the Yellowhead pipeline increase Alberta's energy availability?
The Yellowhead pipeline will increase energy availability across Alberta's system by over 10 percent once it becomes operational.
