The $2.9 billion Atco Yellowhead pipeline will run from Peers to Fort Saskatchewan. Photo by supplied /Atco

Article content

Just greenlighted Monday, the $2.9-billion Yellowhead pipeline will run from Peers to Fort Saskatchewan with shovels in the ground immediately, ramping up to 2,000 crew members by October, and a target in-service date of November 2027.

Article content

Atco Energy Systems got the go-ahead from the Alberta Utilities Commission. Atco is the largest utility in Alberta, operating about half of the electricity grid in Alberta.

Article content

Article content

Article content

The 235-kilometre natural gas transmission pipeline from the Peers area (northeast of Edson) to the Fort Saskatchewan area (northeast of Edmonton) will have one compressor station.

Article content

Article content

When complete in November 2027, the pipeline will deliver more than 1.1 billion cubic feet of natural gas to the system per day — roughly the same amount of energy delivered by Alberta’s entire electricity system on a peak day.

Article content

Postmedia spoke with Jason Sharpe, COO of Atco Energy Systems. This interview has been edited for clarity and length.

Article content

Article content

Q: If you compare this to your other pipelines. Where does it rank for your company?

Article content

A: This would be our largest pipeline project — actually, the largest project we’ve completed in our utility group. We have done multibillion-dollar projects before, but this is our largest, both financially and the scope of the infrastructure.

Article content

Q: Once in service, the pipeline will deliver more than one billion cubic feet of natural gas to the system per day. That’s enough energy to take care of Alberta for that same day. So, where is this gas going?

Article content

A: Alberta sits on a lot of gas production. We’ve got a pretty decent pipeline network and distribution network within the province. This creates a backbone, and it actually creates capacity throughout the entire province because it makes the flow path (of the whole system) more efficient. That will basically increase energy availability by over 10 per cent. So it adds another 10 per cent of energy delivery within the province of Alberta.

Article content

Article content

Q: What does that bump in productivity mean for Albertans?

Article content

Article content

A: Energy infrastructure underpins economic growth. You’ll see an increase to Alberta’s GDP. Our studies that we had conducted say about a $3.9-billion dollar increase to the GDP once the pipeline’s built, and that’s just because of all the associated projects that will be built because they have access to that energy within the province.

Article content

The $2.9 billion Atco Yellowhead pipeline will run from Peers to Fort Saskatchewan. Photo by Supplied Photo /ATCO

Article content

Q: Does any of this 10 per cent bump affect pricing for Albertans?

Article content

A: I actually think that’s the good news story about this project. It’s underpinned by industrial demand, so what you’ll actually see is either no increase to the bill or a benefit because you have more energy flow going to those industrials. Because it’s got a pretty high industrial load, it actually benefits residential customers.

Article content

Q: What route will the line take?

Article content

A: We follow a lot of existing infrastructure. We want to make sure we’re mitigating that impact and working with the First Nations. We actually parallel other infrastructure, whether that’s a pipeline, a road, or an electrical transmission line, to try to keep that infrastructure in corridors.