The Yellowhead pipeline project is a 235km natural gas pipeline system currently under construction by ATCO Energy Systems in Alberta, Canada.
The system is intended to deliver natural gas to Alberta and the wider Greater Edmonton region.
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Construction of the $2bn (C$2.9bn) project began in July 2026 and is scheduled for completion in the winter of 2027, allowing commercial operations to start by the end of that year.
Project development background
ATCO announced the Yellowhead Mainline project in May 2024, positioning it as an addition designed to expand capacity and improve the performance of Alberta’s natural gas network by connecting production with key markets and supporting growing provincial demand.
The company submitted a detailed application to the Alberta Utilities Commission in September 2024 to demonstrate the need for the scheme, described as the first of two applications.
In August 2025, ATCO announced that its subsidiary, Canadian Utilities, had received Alberta Utilities Commission approval for the Need Assessment Application. By July 2026, the regulator also approved Canadian Utilities’ Yellowhead pipeline project.
Yellowhead pipeline project details
The Yellowhead pipeline project development work includes the installation of a 235km-long, 36in diameter underground high-pressure pipeline to be built in sections.
The scope also covers the construction of a compression station, valve sites, metering stations and tie-ins to Alberta’s existing natural gas transmission network.
The pipeline has a design capacity of more than 1.1 billion cubic feet per day (bcf/d) of natural gas, enough to meet Alberta’s electricity demand for a full day.
Yellowhead pipeline project route
The proposed Yellowhead pipeline route runs from Peers, Alberta, to Fort Saskatchewan, traversing the municipalities of Parkland County, Yellowhead County, Strathcona County, Sturgeon County, Fort Saskatchewan and Lac Ste. Anne County.
Project benefits
Alberta’s requirement for natural gas is rising, driven by a growing population, expanding industrial activity and increasing demand from electricity generation.
By 2030, Alberta’s existing natural gas transmission network, Alberta Integrated System, is forecast to accommodate a further 1,350 terajoules per day of consumption, with around 90% of this incremental capacity already secured through contracts.
If the system is not expanded, the province is likely to encounter supply bottlenecks, which would curb economic growth and reduce access to competitively priced energy for both companies and households.
The Yellowhead pipeline development is being advanced as additional capacity for the Alberta Integrated System to accommodate the rising demand. By integrating with the wider system, the Yellowhead pipeline is intended to increase throughput and provide another flow path for moving natural gas from producers in the Western Canadian Sedimentary Basin to customers across Alberta, including the Greater Edmonton Area.
Furthermore, the development is projected to catalyse more than C$20bn in investments across Alberta, including Dow’s $7.5bn Path2Zero net-zero complex near Edmonton, while expanding market reach for producers.
The project is also expected to create around 2,000 direct construction roles, with associated downstream activity forecast to support approximately 12,000 additional construction jobs and 20,000 permanent positions each year once related investments are in place.
When these downstream developments are operating, they are projected to contribute C$3.9bn annually to Alberta’s gross domestic product.
Contractors involved
OJB Energy Services, a construction and maintenance contractor, has been awarded the construction contract for the Yellowhead pipeline project.
Pipeline Machinery International, a pipeline construction equipment supplier, is providing 80 CAT Excavators to OJB Energy Services, which will be operated by the International Union of Operating Engineers Local 955 (IUOE 955).
