ATCO approved to start construction on $2.9B Yellowhead pipeline

ATCO (ACLLF) said Monday its Canadian Utilities (CDUAF) subsidiary received final approval from the Alberta Utilities Commission for the Yellowhead natural gas pipeline, clearing the way for construction of the $2.9B project.

The approved project will consist of the construction and operation of a 235-km natural gas transmission pipeline from the Peers area in west-central Alberta to the Fort Saskatchewan area and one compressor station; the pipeline is already fully contracted, underscoring the demand for natural gas in the region, the company said.

The project is expected to deliver more than 1.1 Bcf of natural gas once it enters service.