CALGARY,
AB, May 8, 2024 /CNW/ - Canadian Utilities
Limited (TSX: CU)
- The Yellowhead Mainline will support energy, petrochemical,
building materials and hydrogen projects that use natural gas and
carbon capture technology to produce products that the world
demands with lower emissions than previously possible.
- The Yellowhead Mainline will also reinforce the natural gas
network and contribute to energy security for Alberta's growing population and
industries.
- The project is expected to create thousands of direct jobs
during construction and enable more than $20
billion of investment and associated employment in
Alberta by customers, including
Dow's Path2Zero project, while providing additional market access
to producers.
- With the announcement of the Yellowhead Mainline project, ATCO
Energy Systems is updating its three-year capital investment
guidance.
Canadian Utilities Limited is announcing a new energy
infrastructure project that is expected to be a significant driver
of lower-carbon economic growth in Alberta. The Yellowhead Mainline project will
expand the capacity and enhance the efficiency of the province's
natural gas network, connecting natural gas producers to key
markets and delivering the energy required for Alberta's growing population.
"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 from one of
the cleanest sources of natural gas on the planet," said
Wayne Stensby, Chief Operating
Officer, ATCO Energy Systems. "Canadian Utilities has been
delivering safe, reliable and affordable energy for more than 100
years and we are excited to embark on this new landmark
infrastructure project which we expect to contribute to a
prosperous future for Albertans in the decades to come."
The project is expected to create approximately 2,000 jobs
during construction and will provide gas supply for the more than
$20 billion of investment and
associated employment in Alberta
by our customers, including the Dow Fort Saskatchewan Path2Zero
project.
"Dow appreciates the partnership with ATCO to supply Dow's
Path2Zero project. Together these projects will have a profound
positive impact on communities, creating jobs and economic
opportunity for Alberta," said
Diego Ordonez, President, Dow
Canada. "Collaboration with government officials, the community of
Fort Saskatchewan, our Indigenous
neighbors, and the host of partner companies such as ATCO have been
key to enabling Dow's investment to move forward."
The project consists of building approximately 200 kilometres of
high-pressure natural gas pipeline and related control and
compression facilities that will run from Peers, Alberta, to the northeast Edmonton area. Total investment for the
project is expected to exceed $2
billion, with more precise cost estimation subject to
further refinement of project scope, route and detailed
engineering. The expansion is expected to have the capability to
deliver about 1,000 terajoules (or 1 billion cubic feet) per day of
incremental natural gas delivery capacity and is planned to be
on-stream in Q4 2027 with construction expected to commence in
2026, subject to regulatory and company approvals.
As disclosed in Canadian Utilities' Management's Discussion and
Analysis for the year ended December 31,
2023 (2023 MD&A), ATCO Energy Systems made capital
expenditures of $1,213 million
($1,130 million excluding
International Natural Gas Distribution) and capital
investments1 of $1,219
million ($1,136 million
excluding International Natural Gas Distribution) in 2023. In the
2023 MD&A, guidance was provided that suggested that ATCO
Energy Systems (excluding International Natural Gas Distribution)
expected to make capital investments of between $3.8 to $4.5
billion over the three-year period from 2024-2026. With the
announcement of the Yellowhead Mainline project, ATCO Energy
Systems is updating its capital investment guidance.
As shown below, ATCO Energy Systems now expects its capital
investment to be in the range of $4.3
to $4.7 billion over the same
three-year period. This results in an expected three-year mid-year
rate base compound annual growth rate (CAGR) 2 of
between 3.5 to 4.3 per cent. ATCO Energy Systems continues to
maintain its longer-term mid-year rate base growth outlook of 4 to
5 per cent.
Canadian Utilities Limited and its subsidiary and affiliate
companies have approximately 9,000 employees and assets of
$23 billion. Canadian Utilities, an
ATCO company, is a diversified global energy infrastructure
corporation delivering essential services and innovative business
solutions. ATCO Energy Systems delivers energy for an evolving
world through its electricity and natural gas transmission and
distribution, and international operations segments. ATCO EnPower
creates sustainable energy solutions in the areas of renewables,
energy storage, industrial water and clean fuels. ATCO Australia develops, builds, owns and operates
energy and infrastructure assets. ATCOenergy and Rümi provide
retail electricity and natural gas services, home maintenance
services and professional home advice that bring exceptional
comfort, peace of mind and freedom to homeowners and customers.
More information can be found at www.canadianutilities.com.
Investor & Analyst Inquiries:
Colin Jackson
Senior Vice President, Finance, Treasury & Sustainability
Colin.Jackson@atco.com (403) 808 2636
Media Inquiries:
Kurt
Kadatz
Director, Corporate Communications
Kurt.Kadatz@atco.com
(587) 228 4571
Forward-Looking Information Advisory
Certain statements contained in this news release constitute
forward-looking information. Forward-looking information is often,
but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", "goals", "targets", "strategy", "future", and
similar expressions. In particular, forward-looking information in
this news release includes, but is not limited to, references to:
anticipated benefits to be generated by the Yellowhead Mainline
project, including driving economic growth, supporting energy,
petrochemical, building materials and hydrogen projects,
reinforcing Alberta's natural gas
network, contributing to energy security for Albertans, significant
job creation, additional market access for producers, and expanded
capacity and enhanced efficiency of Alberta's natural gas network; the anticipated
size, specifications and incremental natural gas delivery capacity
of the Yellowhead Mainline project; the expectation that
construction on the Yellowhead Mainline project will commence in
2026 and the project will be on-stream as early as Q4 2027;
expected capital investment; expected growth of energy demand;
expected emissions reductions; and the expected three year mid-year
rate base CAGR for ATCO Energy Systems.
Although the Company believes that the expectations reflected
in the forward-looking information are reasonable based on the
information available on the date such statements are made and
processes used to prepare the information, such statements are not
guarantees of future performance and no assurance can be given that
these expectations will prove to be correct. Forward-looking
information should not be unduly relied upon. By their nature,
these statements involve a variety of assumptions, known and
unknown risks and uncertainties, and other factors, which may cause
actual results, levels of activity, and achievements to differ
materially from those anticipated in such forward-looking
information. The forward-looking information reflects the Company's
beliefs and assumptions with respect to, among other things, the
growth of energy demand; inflation; the development and performance
of technology and technological innovations; continuing
collaboration with industry participants, business partners,
regulatory bodies and environmental groups; the performance of
assets and equipment; the ability to meet current project
schedules; and other assumptions inherent in management's
expectations in respect of the forward-looking information
identified herein.
The Company's actual results could differ materially from
those anticipated in this forward-looking information as a result
of, among other things, risks inherent in the performance of
assets; capital efficiencies and cost savings; applicable laws,
regulations and government policies; regulatory decisions;
competitive factors in the industries in which the Company
operates; prevailing market and economic conditions; credit risk;
interest rate fluctuations; the availability and cost of labour,
materials, services, and infrastructure; future demand for
resources; the development and execution of projects, including
projects not proceeding on schedule or at currently estimated
budgets; prices of electricity, natural gas, natural gas liquids,
and renewable energy; the development and performance of technology
and new energy efficient products, services, and programs including
but not limited to the use of zero-emission and renewable fuels,
carbon capture, and storage, electrification of equipment powered
by zero-emission energy sources and utilization and availability of
carbon offsets; risks related to the activities of other industry
participants, customers, counterparties and/or stakeholders; the
termination or breach of contracts by contract counterparties; the
occurrence of unexpected events such as fires, floods, extreme
weather conditions, explosions, blow-outs, equipment failures,
transportation incidents, and other accidents or similar events;
global pandemics; geopolitical tensions and wars; and other risk
factors, many of which are beyond the control of the Company. Due
to the interdependencies and correlation of these factors, the
impact of any one material assumption or risk on a forward-looking
statement cannot be determined with certainty. Readers are
cautioned that the foregoing lists are not exhaustive. For
additional information about the principal risks that the Company
faces, see "Business Risks and Risk Management" in the 2023
MD&A.
This news release contains financial outlook information,
which is subject to the same assumptions, risk factors, limitations
and qualifications set forth above. Readers are cautioned that the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise or inaccurate and, as such, undue
reliance should not be placed on such financial outlook
information. The Company's actual results, performance and
achievements could differ materially from those expressed in, or
implied by, such financial outlook information. The Company has
included such information in order to provide readers with a more
complete perspective on its future operations and its current
expectations relating to its future performance. Such information
may not be appropriate for other purposes and readers are cautioned
that such information should not be used for purposes other than
those for which it has been disclosed herein. The financial outlook
information that is contained herein was approved and made as of
the date of this news release.
Any forward-looking information contained in this news
release represents the Company's expectations as of the date
hereof, and is subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required by applicable
securities legislation.
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1 Capital investment is a
non-GAAP financial measure that is defined as cash used for capital
expenditures, business combinations, and cash used in the Company's
share of capital expenditures in joint ventures. The most directly
comparable financial measure that is disclosed in the Company's
financial statements is capital expenditures. Capital expenditures
include additions to property, plant and equipment and intangibles
as well as interest capitalized during construction. Capital
investment is not a standardized financial measure under the
reporting framework used to prepare the Company's financial
statements. Capital investment may not be comparable to similar
financial measures disclosed by other issuers. For additional
information, see "Other Financial and Non-GAAP Measures" and
"Reconciliation of Capital Investment to Capital Expenditures" in
the 2023 MD&A, which is available on SEDAR+ at
www.sedarplus.ca. The referenced sections of the 2023 MD&A are
incorporated by reference herein.
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2 Mid-year rate base is equal
to total net capital investment less depreciation. Growth in
mid-year rate base is a leading indicator of a utility's earnings
trend, depending on changes in the equity ratio of the mid-year
rate base and the rate of return on common equity. Mid-year rate
base CAGR is not a standardized financial measure under the
reporting framework used to prepare the Company's financial
statements and may not be comparable to similar financial measures
disclosed by other issuers.
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SOURCE Canadian Utilities Limited
