08:36 AM EDT, 05/08/2024 (MT Newswires) -- Canadian Utilities ( CDUTF ) on Wednesday said it will spend more than $2 billion building a new natural-gas pipeline within the province of Alberta.

The company, one of the firms in the stable of the Atco (ACO-X.TO) conglomerate, said its Yellowhead project is a 200-kilometer pipeline running from the village of Peers in the province's northwest to near the provincial capital of Edmonton. The pipeline will carry one-billion cubic feet of gas per day.

Construction of the line is expected to begin in 2026 and be completed the following year pending regulatory approvals. The company is still firming up a budget and routing for the the project, but said it expects the cost to exceed $2 billion.

"As Alberta's energy demand continues to grow, the Yellowhead Mainline will play a crucial role in reinforcing Alberta's energy infrastructure and enhancing access to reliable energy," Wayne Stensby, chief operating officer at Atco Energy Systems, said in a release.

Atco Energy Systems - which includes Canadian Utilities ( CDUTF ), Atco Electric and Atco Gas and other units - raised its three-year capital-spending budget to between $4.3 billon and $4.7 billion from its prior range of $3.8 billion to $4.5 billion.

Canadian Utilities ( CDUTF ) shares closed up $0.45 to $31.16 Tuesday on the Toronto Stock Exchange, while Atco Class X shares closed $0.84 higher at C$39.10.