Deloitte claims project would contribute more than $35-billion to Canada's GDP, create 11,000 jobs
CALGARY—A new study commissioned by TransCanada Corp. predicts the company’s proposed Energy East pipeline project would contribute more than $35-billion to Canada’s GDP and create more than 11,000 jobs.
The study from Deloitte & Touche LLP claims that if approved, the $12-billion project would generate more than $10-billion in tax revenue at the municipal, provincial and federal levels of government over the more than 40-year life span of the project.
“Energy East is a critical infrastructure project for all Canadians because it will enhance our country’s energy security, allow us to receive greater value for our important natural resources and will create tangible economic benefits for communities across the country,” TransCanada president and CEO Russ Girling said in the study’s release.
“This pipeline is an excellent example of how Canada’s oil and gas sector is truly a national industry that generates thousands of jobs, billions of dollars in economic benefits and billions more in tax revenues.”
According to the Deloitte study, the project would generate an estimated $10-billion in additional GDP for the Canadian economy during the six-year development and construction phase from 2013 to 2018, and another $25.3-billion during its 40-year operations phase.
Furthermore, the study claims Energy East would create an estimated 10,000 direct full-time equivalent jobs across the country—2,300 during the development period from 2013 to 2015, and 7,700 during the construction period from 2016 to 2018.
The 40-year operations phase is expected to sustain 1,000 full-time jobs across Canada directly related to the pipeline’s operation.
Thousands of indirect and induced jobs are also expected to be generated by the project in all provinces along the route, according to the study.
“Energy East will create business opportunities and economic spin-offs that ripple across virtually all areas of the economy and support the livelihoods of millions of Canadians,” Girling said.
The proposed pipeline, which would run from western Canada to the Atlantic, has taken some of the spotlight from the Enbridge Northern Gateway and Keystone XL projects lately, with a number of Canadian politicians voicing support for the project.
Prime Minister Stephen Harper has called the Energy East project important for both Canadian energy security and job creation across the country.
The project would deliver up to 1.1 million barrels per day of crude oil from western Canada to refineries and export terminals in Quebec and New Brunswick.