Canadian Utilities Limited is unveiling a novel energy infrastructure initiative anticipated to significantly stimulate lower-carbon economic advancement in Alberta. The Yellowhead Mainline project aims to bolster the province's natural gas network by augmenting capacity and optimizing efficiency, facilitating the connection between natural gas producers and vital markets while supplying the energy needs of Alberta's expanding population.

"As Alberta's energy requirements expand, the Yellowhead Mainline is poised to serve as a pivotal asset in bolstering the province's energy infrastructure and improving access to dependable energy sourced from one of the cleanest natural gas reserves globally," stated Wayne Stensby, Chief Operating Officer of ATCO Energy Systems. "With a century-long legacy of delivering secure, reliable, and cost-effective energy solutions, Canadian Utilities is thrilled to initiate this groundbreaking infrastructure endeavor, poised to underpin a thriving future for Albertans in the years ahead."

The endeavor is projected to generate around 2,000 employment opportunities throughout its construction phase. Additionally, it will furnish gas supply for the investment surpassing $20 billion and the consequent employment opportunities in Alberta by our clientele, notably including the Dow Fort Saskatchewan Path2Zero project.

Diego Ordonez, President of Dow Canada, expressed gratitude for the collaboration with ATCO in supplying Dow's Path2Zero project. He highlighted the substantial positive influence these initiatives would have on communities by generating employment opportunities and fostering economic growth in Alberta. Ordonez emphasized that the success of Dow's investment has been made possible through collaboration with government officials, the Fort Saskatchewan community, Indigenous neighbors, and partner companies like ATCO.

The endeavor entails the construction of roughly 200 kilometers of high-pressure natural gas pipeline, alongside related control and compression facilities. The pipeline route spans from Peers, Alberta, to the northeast Edmonton area. The overall investment for the project is projected to surpass $2 billion, although a more precise cost estimate is contingent upon further refinement of the project scope, route, and detailed engineering. Anticipated to enhance natural gas delivery capacity by about 1,000 terajoules (or 1 billion cubic feet) per day, the expansion aims to be operational in the fourth quarter of 2027, with construction slated to commence in 2026, pending regulatory and company approvals.

As stated in the Management's Discussion and Analysis for the fiscal year ended December 31, 2023 (2023 MD&A) of Canadian Utilities, ATCO Energy Systems reported capital expenditures of $1,213 million ($1,130 million excluding International Natural Gas Distribution) and capital investments of $1,219 million ($1,136 million excluding International Natural Gas Distribution) in 2023. The 2023 MD&A also provided guidance suggesting that ATCO Energy Systems (excluding International Natural Gas Distribution) expected capital investments ranging from $3.8 to $4.5 billion over the three-year period from 2024 to 2026. With the initiation of the Yellowhead Mainline project, ATCO Energy Systems is updating its capital investment guidance.

ATCO Energy Systems anticipates its capital investment to fall within the range of $4.3 to $4.7 billion over the same three-year period. This corresponds to a projected mid-year rate base compound annual growth rate (CAGR) of 3.5 to 4.3 percent over the three-year period. ATCO Energy Systems remains committed to its longer-term mid-year rate base growth outlook of 4 to 5 percent.