- Canadian Utilities Ltd., a subsidiary of Atco Ltd., received approval from the Alberta Utilities Commission for the Need Assessment Application of the Yellowhead Pipeline Project
- The 230-km pipeline will deliver over 1,200 terajoules of natural gas daily, supporting Alberta’s growing energy demands and industrial development
- A facilities application will be filed later this year, with construction expected in 2026; the project is projected to create thousands of jobs and contribute billions to Alberta’s GDP
- Atco stock (TSX:ACO.X) opened trading at C$51.32
Atco’s (TSX:ACO.X) subsidiary, Canadian Utilities Ltd., has received approval from the Alberta Utilities Commission (AUC) for the Need Assessment Application of the Yellowhead Pipeline Project, a big step in Alberta’s energy infrastructure development.
The Yellowhead Pipeline is designed to expand Alberta’s integrated natural gas transmission system, stretching over 230 kilometres from the Peers area to Fort Saskatchewan. Once operational, the pipeline will deliver more than 1,200 terajoules (1.1 billion cubic feet) of natural gas per day, supporting the province’s growing industrial and residential energy demands
“This Alberta Utilities Commission 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,” Nancy Southern, ATCO’s Chair and CEO, said in a news release.
“The AUC’s decision follows a rigorous review process, which acknowledged the project’s strong contractual support – 90 per cent of capacity is already committed – and its alignment with long-term demand forecasts,” Canadian Utilities’ CEO, Bob Myles added in another statement. “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.”
The approval of the Need Assessment Application is the first of two major regulatory hurdles. A separate facilities application, detailing construction and operational plans, is expected to be filed later this year. Construction is anticipated to begin in 2026.
Beyond its energy implications, the Yellowhead Pipeline is projected to generate substantial economic benefits. It is expected to create 2,000 direct jobs and support an average of 12,000 jobs annually through downstream investments. Once operational, these investments could contribute approximately $3.9 billion annually to Alberta’s GDP.
With operations in Canada and Mexico, Atco Ltd. is working to foster the energy transition with its energy solutions, including renewable energy, carbon capture and storage, hydrogen and derivatives and energy storage. Atco’s structures and logistics segment offers workforce and residential housing, modular facilities, construction, site support services, workforce lodging services, facility operations and maintenance, defence operations services, and disaster and emergency management services.
Atco stock (TSX:ACO.X) opened trading more than half a per cent higher at C$51.32 and rose 8.62 per cent since the beginning of the year.
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