CALGARY, ALBERTA -- (Marketwired) -- 09/10/13 -- (ii)Editor's note: Conference call for reporters today at 6 a.m. (MDT) / 9 a.m. (ADT). Details below.
TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada) today released the results of a report by Deloitte & Touche LLP (Deloitte) that examines the jobs and economic benefits associated with the company's $12-billion Energy East Pipeline project. The report commissioned by TransCanada highlights that Energy East will deliver significant economic benefit to the entire country, with all six provinces along the pipeline's route projected to see job creation, economic growth and increased tax revenues related to the proposed pipeline's construction and operation for decades to come.
The analysis conducted by Deloitte estimates that Energy East will generate $35 billion in additional gross domestic product (GDP) for Canada during six years of development and construction, and over 40 years of operation. The report also estimates more than 10,000 full-time jobs will be directly supported during development and construction of the pipeline between 2013 and 2018 and another 1,000 full-time jobs will be directly supported by the pipeline once it begins service. Deloitte also found that Energy East will generate an additional $10 billion in tax revenues for all levels of government over the life of the project. Deloitte's projections were generated using Statistics Canada's Input/Output model, which measures direct, indirect and induced economic effects of large industrial projects and activities in Canada.
"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," said Russ Girling, TransCanada's president and chief executive officer. "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. 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."
Highlights of Deloitte's analysis of the economic benefits of the Energy East Pipeline project include:
Energy East will generate an estimated $10 billion in additional GDP for the Canadian economy during the six-year development and construction phase and $25.3 billion during the 40-year operations phase examined in the study (regular maintenance is expected to extend the operating life of the pipeline beyond 40 years).
The six-year development and construction phase of the project will generate an estimated 10,000 direct full-time equivalent (FTE) jobs across the country, 2,300 during the development period (2013-2015) and 7,700 during the construction period (2016-2018). 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.
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