146-Mile, $2.9 Billion ATCO Yellowhead Gas Pipeline Approved by AUC
ATCO has received final regulatory approval for its 146-mile Yellowhead Gas Pipeline, paving the way for immediate construction on a major Alberta natural gas project.
(P&GJ) — ATCO has received final approval from the Alberta Utilities Commission (AUC) to construct and operate its $2.9 billion Yellowhead Pipeline, clearing the way for construction to begin immediately on one of Alberta's largest planned natural gas transmission projects.
The approved project includes a 235-kilometer (146-mile), 36-inch natural gas transmission pipeline extending from the Peers area to Fort Saskatchewan, Alberta, along with a compressor station. According to the company, the pipeline is fully contracted and is designed to transport more than 1.1 billion cubic feet per day of natural gas once it enters service.
Construction is expected to begin immediately following the regulatory approval.
Jason Sharpe, chief operating officer of ATCO Energy Systems, said the project is intended to support Alberta's growing demand for natural gas while enabling additional industrial development.
"The Yellowhead Pipeline will help meet Alberta's growing need for safe, reliable and affordable energy while supporting continued economic growth across the province," Sharpe said. "With our extensive natural gas infrastructure experience and strong partnerships with contractors, crews, communities and Treaty Six Nations, ATCO is ready to move this critical project into construction."
ATCO estimates the project will create approximately 2,000 direct construction jobs and support an additional 12,000 downstream construction jobs tied to related industrial developments. Once those projects are operational, the company estimates they will sustain roughly 20,000 permanent jobs annually and contribute about $3.9 billion each year to Alberta's gross domestic product.
The company said all major pipeline, compressor, material and supply contracts have been awarded, allowing construction activities to begin immediately. ATCO also said the project includes contracting opportunities for Treaty 6 Nations and local subcontractors.
The Yellowhead Pipeline represents an estimated $2.9 billion investment and is intended to expand Alberta's natural gas transmission network as industrial demand and electricity generation continue to grow. ATCO said the pipeline's planned capacity of more than 1.1 billion cubic feet per day is roughly equivalent to the amount of energy delivered by Alberta's electricity system during a peak-demand day.
Additional project information is available on ATCO's Yellowhead Pipeline website.