Construction begins on $2.9 billion Yellowhead natural gas pipeline in central Alberta

Construction is poised to begin on a $2.9 billion natural gas pipeline in central Alberta after provincial regulators approved the Yellowhead project proposed by Canadian Utilities Ltd.

The project includes construction and operation of a 235-kilometre natural gas transmission pipeline running from the Peers area in west-central Alberta to the Fort Saskatchewan region northeast of Edmonton, where gas processing and petrochemical plants operate. It is expected to deliver over 1.1 billion cubic feet of natural gas daily — equivalent to what Alberta's entire electricity system delivers on a peak day.

All major pipeline and compressor contracts, including supply and materials, have been awarded. The project is expected to create about 2,000 direct construction jobs. ATCO Ltd., Canadian Utilities' parent company, said it is ready to move the project into construction, citing extensive natural gas infrastructure experience and partnerships with contractors, communities, and Treaty 6 Nations.

Jason Sharpe, ATCO's chief operating officer, said the Yellowhead Pipeline will help meet Alberta's growing need for safe, reliable and affordable energy while supporting continued economic growth across the province. ATCO has called it its largest-ever energy infrastructure project.