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ATCO Unit to Build New Gas Pipeline in Alberta

ATCO subsidiary Canadian Utilities Limited plans to build a new natural gas pipeline that aims to boost the energy infrastructure of Alberta.

The Yellowhead Mainline project will expand the capacity and enhance the efficiency of the province’s natural gas network, connecting natural gas producers to key markets and delivering the energy required for Alberta’s growing population, ATCO said in a news release.

The project consists of building approximately 124.3 miles (200 kilometers) of high-pressure natural gas pipeline and related control and compression facilities that will run from Peers, Alberta, to the northeast Edmonton area. It will support energy, petrochemical, building materials and hydrogen projects that use natural gas and carbon capture technology, including the Dow Fort Saskatchewan Path2Zero project, ATCO noted.

ATCO said the total investment for the project is expected to exceed $1.46 billion (CAD 2 billion), with more precise cost estimations subject to further refinement of project scope, route and detailed engineering.

The expansion is expected to have the capability to deliver about 1,000 terajoules, or 1 billion cubic feet, per day of incremental natural gas delivery capacity, according to the release. ATCO expects the project to be operational in the fourth quarter of 2027, with construction expected to begin in 2026, subject to regulatory and company approvals.

“As Alberta’s energy demand continues to grow, the Yellowhead Mainline will play a crucial role in reinforcing Alberta’s energy infrastructure and enhancing access to reliable energy from one of the cleanest sources of natural gas on the planet,” Wayne Stensby, ATCO Energy Systems COO, said. “Canadian Utilities has been delivering safe, reliable and affordable energy for more than 100 years and we are excited to embark on this new landmark infrastructure project which we expect to contribute to a prosperous future for Albertans in the decades to come”.

“Dow appreciates the partnership with ATCO to supply Dow’s Path2Zero project. Together these projects will have a profound positive impact on communities, creating jobs and economic opportunity for Alberta,” Diego Ordonez, Dow Canada President, said. “Collaboration with government officials, the community of Fort Saskatchewan, our Indigenous neighbors, and the host of partner companies such as ATCO have been key to enabling Dow’s investment to move forward”.

In November 2023, global materials science firm Dow Inc made a final investment decision on its $6.5 billion Fort Saskatchewan Path2Zero project, which aims to build the world’s first net-zero scope 1 and 2 emissions integrated ethylene cracker and derivatives facility in Alberta, Canada.

The project includes building a new ethylene cracker and increasing polyethylene capacity by 2 million metric tons per annum as well as retrofitting the site’s existing cracker to net-zero scope 1 and 2 emissions, Dow said in an earlier news release.

Canadian Utilities, an ATCO company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions. ATCO Energy Systems describes itself as a company that delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations segments.

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