ATCO Energy Systems announces its largest ever energy infrastructure project: Yellowhead Mainline to drive economic growth in Alberta

• The Yellowhead Mainline will support energy, petrochemical, building materials and hydrogen projects that use natural gas and carbon capture technology to produce products that the world demands with lower emissions than previously possible.
• The Yellowhead Mainline will also reinforce the natural gas network and contribute to energy security for Alberta’s growing population and industries.
• The project is expected to create thousands of direct jobs during construction and enable more than $20 billion of investment and associated employment in Alberta by customers, including Dow’s Path2Zero project, while providing additional market access to producers.
• With the announcement of the Yellowhead Mainline project, ATCO Energy Systems is updating its three-year capital investment guidance.

Canadian Utilities Limited is announcing a new energy infrastructure project that is expected to be a significant driver of lower-carbon economic growth in 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.

“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,” said Wayne Stensby, Chief Operating Officer, ATCO Energy Systems. “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.”

The project is expected to create approximately 2,000 jobs during construction and will provide gas supply for the more than $20 billion of investment and associated employment in Alberta by our customers, including the Dow Fort Saskatchewan Path2Zero project.

“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,” said Diego Ordonez, President, Dow Canada. “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.”

The project consists of building approximately 200 kilometres of high-pressure natural gas pipeline and related control and compression facilities that will run from Peers, Alberta, to the northeast Edmonton area.  Total investment for the project is expected to exceed $2 billion, with more precise cost estimation 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 and is planned to be on-stream in Q4 2027 with construction expected to commence in 2026, subject to regulatory and company approvals.

As disclosed in Canadian Utilities’ Management’s Discussion and Analysis for the year ended December 31, 2023 (2023 MD&A), ATCO Energy Systems made capital expenditures of $1,213 million ($1,130 million excluding International Natural Gas Distribution) and capital investments¹ of $1,219 million ($1,136 million excluding International Natural Gas Distribution) in 2023. In the 2023 MD&A, guidance was provided that suggested that ATCO Energy Systems (excluding International Natural Gas Distribution) expected to make capital investments of between $3.8 to $4.5 billion over the three-year period from 2024-2026. With the announcement of the Yellowhead Mainline project, ATCO Energy Systems is updating its capital investment guidance.

As shown below, ATCO Energy Systems now expects its capital investment to be in the range of $4.3 to $4.7 billion over the same three-year period. This results in an expected three-year mid-year rate base compound annual growth rate (CAGR) ² of between 3.5 to 4.3 per cent.  ATCO Energy Systems continues to maintain its longer-term mid-year rate base growth outlook of 4 to 5 per cent.

Canadian Utilities Limited and its subsidiary and affiliate companies have approximately 9,000 employees and assets of $23 billion. Canadian Utilities, an ATCO company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions. ATCO Energy Systems delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations segments. ATCO EnPower creates sustainable energy solutions in the areas of renewables, energy storage, industrial water and clean fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCOenergy and Rümi provide retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. More information can be found at www.canadianutilities.com.