Wedoany.com Report-Aug. 30, The Alberta Utilities Commission (AUC) has approved the need for Canadian Utilities Ltd.’s Yellowhead natural gas pipeline project. This multi-billion-dollar project is designed to transport over 1,200 terajoules (or 1.1 billion cubic feet) of natural gas daily through a 230-kilometer (142.92 miles) pipeline stretching from the Peers area to Fort Saskatchewan, Alberta.

The Alberta Utilities Commission certified the need for the Yellowhead gas pipeline project of ATCO's Canadian Utilities.

ATCO Ltd., the parent company of Canadian Utilities, announced that the "Need Assessment Application" is the first of two key regulatory filings required for the project’s approval. The second filing, a separate facilities application, is expected to be submitted later this year by ATCO Energy Systems, the operating entity for Canadian Utilities. Approval of the facilities application will be necessary to begin construction, which is slated to start in 2026.

Nancy Southern, Chair and CEO of ATCO, commented on the AUC's decision, emphasizing the strategic role of the Yellowhead Pipeline in bolstering Alberta’s long-term energy resilience. She stated: “This decision affirms the strategic importance of the Yellowhead Pipeline in supporting Alberta's long-term energy resilience with infrastructure that will empower communities, enable industrial growth and reinforce our commitment to responsible development across the province.” Southern also highlighted that community consultations along the proposed route were conducted and that the project aligns with both local priorities and broader energy needs.

The estimated investment for the Yellowhead project is CAD 2.8 billion ($2.04 billion). According to ATCO, the project is expected to create 2,000 direct jobs and support approximately 12,000 jobs annually through related downstream investments. Once operational, these investments are projected to contribute CAD 3.9 billion annually to Alberta's GDP, based on an internal study by Oxford Economics.

In addition to the Yellowhead pipeline, Canadian Utilities is progressing with the Central East Transfer-Out (CETO) power transmission line project. Construction for CETO began in the third quarter of 2024, and the project will support renewable energy integration in Alberta. CETO will transport electricity to the counties of Red Deer, Lacombe, and Stettler, supplying over 1,500 megawatts to the provincial grid. The transmission line is on track to be energized by June 2026, with an expected investment of approximately CAD 280 million.

Canadian Utilities has also pursued partnerships with Indigenous groups for equity arrangements related to both the Yellowhead pipeline and other projects, as part of its ongoing stakeholder engagement efforts.