ATCO Ltd.'s ATCO Energy Systems will begin construction immediately on its Yellowhead pipeline project after receiving final approval from the Alberta Utilities Commission (AUC) for the 146-mile natural gas transmission pipeline in Alberta. The project represents the largest infrastructure investment in ATCO's history.

The $2.9-billion (Can.) infrastructure project includes construction of a 36-in. OD pipeline extending from the Peers area in west-central Alberta to the Fort Saskatchewan region, along with a new compressor station. When completed, the system will be capable of transporting more than 1.1 bcfd of natural gas to Alberta's Industrial Heartland and surrounding markets.

ATCO said all major pipeline, compression, materials, and construction contracts have been awarded, allowing construction activities to begin immediately

The Yellowhead pipeline previously received approval of its Need Assessment Application from the AUC in 2025. The final facilities approval authorizes construction and operation of the pipeline and associated compressor station.