Alberta's Yellowhead Project to Join US$4 Billion in Canadian NatGas Pipeline Construction

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

With approval from the Alberta Utilities Commission, construction is set to begin immediately on the Yellowhead natural gas pipeline, joining US$4 billion in existing Canadian natural gas pipeline construction.

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A New Pipeline for Canada

A new pipeline is set to move up to 1.1 billion cubic feet per day (Bcf/d) of natural gas over a distance of 235 kilometers (146 miles) within Alberta. The Alberta Utilities Commission has given the final permission needed for pipeline owner ATCO Energy Solutions to begin construction immediately on the Yellowhead natural gas pipeline.

Industrial Info Resources data show US$4 billion worth of existing natural gas pipeline construction underway in Canada, which soon will be joined by work on the Yellowhead line as ATCO says it already has awarded the major material, supply and compressor contracts.

ATCO says the Yellowhead has been fully contracted for its 1.1 Bcf/d in carrying capacity and will move gas from near Peers to Fort Saskatchewan within Alberta.

Existing NatGas Pipeline Construction

Most of the US$4 billion in current Canadian pipeline construction involves two projects: the Woodfibre liquefied natural gas (LNG) plant and the Prince Rupert grassroot natural gas transmission line, linked to another LNG project. Both pipeline projects (as well as the associated LNG plants) are in British Columbia.

The Woodfibre plant is an LNG export facility at the site of a former pulp and paper mill in Squamish, British Columbia, that will export 2.1 million metric tons of LNG per year when it begins operating next year, requiring 220 million cubic feet per day of feed gas. Most of that gas will be supplied by a 47-kiilometer (29-mile) pipeline addition underway by pipeline operator Fortis that is expected to be completed shortly before the LNG plant begins operating.

That pipeline addition is a drop in the bucket compared with British Columbia's Prince Rupert natural gas pipeline project, a substantial undertaking valued by Industrial Info Resources at more than US$3 billion that will move natural gas 900 kilometers (560 miles) from northeast British Columbia (B.C.) to the northwest B.C. coast and the site of the upcoming Ksi Lisims LNG plant. Construction on that plant is expected to begin later this year and be completed in 2029, when it will begin ramping up to production of 12 million metric tons of LNG per year, some of which has been contracted to Shell and TotalEnergies.

Meanwhile, construction of the Prince Rupert Pipeline that will feed the LNG plant has been underway since last year and is expected to wrap up before the LNG plant begins full operations. The pipeline initially will carry around 2 Bcf/d of gas but will be expandable to up to 3.6 Bcf/d if demand arises.

Future Canadian Natural Gas Pipeline Construction

Including the newly approved Yellowhead project, Industrial Info Resources is tracking US$3 billion in Canadian natural gas pipeline projects set to begin construction in the future, although the Yellowhead pipeline will soon be in active construction, according to ATCO.

Among the most intensive future projects on the books is Enbridge's Sunrise Expansion Program, approved earlier this year, that will add 139 kilometers (86 miles) of pipeline loops in British Columbia along with new compressor stations, and modifications and additions to several existing compression facilities. Work is expected to begin in the coming months and will add another 300 million cubic feet per day of carrying capacity to the Enbridge system.

Key Takeaways

• The Alberta Utilities Commission has given the final permission needed for construction to begin on the Yellowhead natural gas pipeline in Alberta.
• The Yellowhead system will carry up to 1.1 Bcf/d of natural gas 235 kilometers (146 miles) within Alberta.
• The project joins US$4 billion in current Canadian natural gas pipeline construction and is part of US$3 billion of similar projects planned for the future in the country.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).