Construction to begin on $2.9B Alberta natural gas pipeline after regulator approval

FILE: An Alberta flag flaps in the breeze with Mt. Kidd. THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Construction is poised to begin right away on a new $2.9-billion natural gas pipeline in central Alberta after the provincial power regulator approved the Yellowhead project proposed by Canadian Utilities Ltd.

The project includes the construction and operation of a 235-kilometre natural gas transmission pipeline from the Peers area in west-central Alberta to the Fort Saskatchewan region northeast of Edmonton, home to gas processing and petrochemical plants. 

It is expected to deliver over 1.1 billion cubic feet of natural gas, which the company said is equivalent to what Alberta’s entire electricity system delivers on a peak day. 

“The Yellowhead Pipeline will help meet Alberta’s growing need for safe, reliable and affordable energy, while supporting continued economic growth across the province,” said Jason Sharpe, chief operating officer at ATCO Ltd., Canadian Utilities’ parent company. 

• Latest updates on company news here

“With our extensive natural gas infrastructure experience and strong partnerships with contractors, crews, communities and Treaty 6 Nations, ATCO is ready to move this critical project into construction.”

All major pipeline and compressor contracts, including supply and materials, have been awarded, Canadian Utilities said.  

The project is expected to create about 2,000 direct construction jobs. ATCO has billed the Yellowhead pipeline as its largest-ever energy infrastructure project. 

This report by The Canadian Press was first published July 20, 2026.