Atco awaiting green light to build $2.9B natural gas pipeline across west

Atco awaits green light to build $2.9B natural gas pipeline across west-central Alberta

Work could begin by September on Yellowhead pipeline to Fort Saskatchewan

An Alberta energy company is waiting for the final approval to begin building a 235-kilometre pipeline to move natural gas from west-central Alberta to the Industrial Heartland near Edmonton.

Atco’s proposed $2.9-billion Yellowhead pipeline would start at a new compression site in the hamlet of Peers, about 175 kilometres west of Edmonton, and finish in the hydrocarbon processing region near Fort Saskatchewan, Alta.

The underground, high-pressure, 36-inch-diameter steel pipeline would move over 1.1 billion cubic feet of natural gas daily, according to Brad Cann, a senior manager for Atco, who spoke on Tuesday at a Yellowhead County council meeting

With the potential for construction to begin as early as September, Cann was at the meeting to update councillors about the status of the project.

The pipeline’s daily capacity, according to Cann, is enough natural gas to meet the needs of Alberta’s entire electricity grid.

Atco has said the pipeline is needed to service the fast-growing northern part of the province in the face of growing demand for power generation, manufacturing, petrochemical processing and residential use.

Yellowhead County Mayor Wade Williams expressed his excitement. “We look forward to the launch and this thing getting built across our beautiful county.”

Atco first started the approval process with the Alberta Utilities Commission (AUC) in September 2024. Atco submitted its final regulatory application to the AUC in November 2025, and the hearing took place a few weeks ago, said Cann, who expects a decision to be made within the next few months.

The greater Edmonton area currently gets natural gas from an existing pipeline system that starts at production sites in northwestern Alberta and British Columbia, flowing east to Fort McMurray and then south to Edmonton.

Another pipeline flows southeast toward Calgary before looping back up to Edmonton.

But Atco’s proposed Yellowhead pipeline would bypass those routes to move gas directly to Alberta’s Industrial Heartland.

The pipeline route was changed in early 2025 to follow along Highway 16, where there was already previous development.

It will start at a new compressor site near Peers, running parallel to the highway on the north side until it reaches Nojack. From there, the pipeline will be on the south side of the highway until it crosses the Pembina River.

Passing through Lac Ste. Anne County, the route cuts north of Highway 37, above Spruce Grove and St. Albert, before crossing the North Saskatchewan River into the Fort Saskatchewan area.

All told, the pipeline would cross 212 pipelines, cable and power lines, and 61 roads and highways. Cann said it would directly impact 400 landowners in Yellowhead County, Lac Ste. Anne County, Sturgeon County, Parkland County and the Greater Edmonton area, and an additional 500 adjacent landowners.

Cann told council members that Atco has finalized 90 per cent of the land agreements. The rest are either in the process of finalizing the agreement or are outright rejecting the project on their land.

“There is some chance though that there [are] a few folks that are just not interested in the pipeline route being on their property,” said Cann. “And then we have to go through the Land and Property Rights Tribunal process.”

Coun. David Russell noted that his constituents in Peers have been quiet about the new development.

“I think that your efforts must be rewarded because I haven't received a single comment about the pipeline, negative or positive, so you must be doing really well.”

But for some, the pipeline plan hasn’t been smooth sailing.

A previous proposed route would have gone through Steven Bell’s land located north of Lake Isle in a wilderness area with no development and minimal roads.

He and his neighbours helped get close to 1,000 signatures on a petition to oppose the route.

“The win would have been, in my view, to have not had [the pipeline built] at all,” said Bell, 58. “I guess it's a concession that those of us who live in Alberta have to make.”

Bell said if it has to happen, it’s better that the pipeline follow a pre-established route where environmental damage has already been done, rather than through wilderness with diverse species.

For the 10 per cent of landowners who have not signed agreements and oppose the pipeline, Bell’s advice would be to co-ordinate with their neighbours and make sure they stay informed.

“If you get into a disagreement about projects like this and you just sound like some crazed environmentalist who is just angry and ill-informed, then you're not taken seriously.”

If approved, Cann said the pipeline is expected to create 2,000 jobs during construction, 12,000 jobs downstream of the construction from 2026-30, and an additional 23,700 jobs once the pipeline is operating.

“The Yellowhead pipeline project is going to make Alberta stronger,” said Cann. “It's going to provide the infrastructure we need to enable that long-term economic growth and prosperity.”

He said the $2.9 billion capital investment is expected to contribute $3.9 billion to Alberta’s GDP annually.

Atco is expected to choose a general contractor for construction within the next month, said Cann, which means construction should get underway as soon as the fall.

It's expected to be finished November 2027, with reclamation activities and clean-up to follow, said Cann.

Atco has scheduled open houses next month to informally discuss what residents can expect during construction.

Maggie Kirk is a reporter for CBC News in Hinton, Alta.