ATCO subsidiary to build new Alta. pipeline to supply gas to petrochemical project

Dow chair and CEO Jim Fitterling speaks at a Dow Chemical announcement on the world's first net-zero carbon emissions ethylene and derivatives complex, in Fort Saskatchewan Alberta, on November 29, 2023. (Jason Franson)

Canadian Utilities Ltd., a subsidiary of Calgary-based holding company ATCO Ltd., says it plans to build a new natural gas pipeline in Alberta to supply a massive net-zero petrochemical project being built northeast of Edmonton.

Canadian Utilities says it plans to spend more than $2 billion on the new pipeline, which will be the largest-ever energy infrastructure project by an ATCO Energy Systems company.

Canadian Utilities says the pipeline will supply natural gas to Dow Chemicals' $9-billion Path2Zero facility, which is being built near Fort Saskatchewan, Alta. and is billed as the world’s first net-zero-emissions integrated ethylene cracker and derivatives site.

The company says the new pipeline will be around 200 kilometres long and will run from the hamlet of Peers in west-central Alberta to the northeast Edmonton area.

The new pipeline will be called Yellowhead Mainline and is expected to have the capacity to deliver one billion cubic feet per day of natural gas.

Canadian Utilities says construction on the new pipeline is expected to begin in 2026, and the pipeline should be operational in the fourth quarter of 2027.

This report by The Canadian Press was first published May 8, 2024