Construction of Yellowhead Pipeline expected by next year

The Yellowhead Pipeline's needs assessment application was granted approval by the Alberta Utilities Commission.

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The Yellowhead Pipeline's needs assessment application was granted approval by the Alberta Utilities Commission, which validates the "need for new infrastructure to support" the province's growing industry and population.

"This approval is a critical step forward in ensuring Alberta's growing communities and industry have the reliable energy they need," said Bob Myles, chief executive officer of Canadian Utilities.

"The AUC's decision follows a rigorous review process, which acknowledged the project's strong contractual support — 90% of capacity is already committed — and its alignment with long-term demand forecasts."

The project's need assessment application is the first of two key regulatory filings required by the Alberta Utilities Commission to further advance the pipeline.

Later this year, ATCO Energy Systems will file a separate facilities application seeking AUC approval regarding construction and operation of the project's physical infrastructure.

The project is expected to create roughly 2,000 direct jobs and support an average of 12,000 jobs per year through related downstream investments.

“Once operational, the downstream investments are estimated to contribute $3.9 billion annually to Alberta’s GDP,” said ATCO Energy Systems in a press release on Friday.

The company said the approval marks a "major milestone in the development of Alberta's energy infrastructure."

The Yellowhead Pipeline Project aims to expand the capacity of the province's natural gas transmission system and will run approximately 230 kilometres from Peers, Alta., to Fort Saskatchewan.

The pipeline will be capable of transporting more than 1,200 terajoules (1.1 billion cubic feet) of natural gas daily.

The company expects construction to begin next year.

"In anticipation of next steps, we will continue to consult with communities along the proposed route. We will also continue to pursue potential equity partnership arrangements with Indigenous partners," said Myles.