Approximately half of the jobs created in the development and construction phase will be in the construction, engineering, architectural and oil & gas support services industries, while approximately half of the jobs in the operations phase will be in the oil and natural gas pipelines and power generation and transmission industries.
The development and construction phase is expected to generate an additional $3 billion in tax revenues for municipal, provincial and federal governments across Canada. The operations phase will result in $7.2 billion in added tax revenues.
(See attached Backgrounder for break-down by province.)
TransCanada announced the results of the open season for the Energy East Pipeline project on August 1, confirming that it will move forward with a 1.1 million barrel per day (bbl/d) pipeline based on binding, long-term contracts from producers and refiners to ship approximately 900,000 bbl/d of crude oil from Western Canada to Eastern Canadian refineries and export terminals.
Eastern Canadian refineries currently import more than 700,000 bbl/d, or 86 per cent of their daily needs, from more expensive overseas sources including Saudi Arabia, Nigeria, Venezuela and Algeria. Oil from Energy East will potentially replace this foreign oil with a more reliable domestic supply from Western Canada. Supplying refineries in Quebec and New Brunswick with Canadian oil also supports the hundreds of jobs and related positive economic impacts these facilities provide in local communities.
The project involves converting a portion of natural gas pipeline capacity in approximately 3,000 kilometres (1,864 miles) of TransCanada's existing Canadian Mainline to crude oil service and constructing approximately 1,400 kilometres (870 miles) of new pipeline. The pipeline will transport crude oil from receipt points in Alberta and Saskatchewan to delivery points in Montreal, the Quebec City region and Saint John, New Brunswick, greatly enhancing producer access to Eastern Canadian and international markets. The pipeline will access a marine terminal in Quebec and a terminal at Canaport in Saint John, New Brunswick where TransCanada and Irving Oil have formed a joint venture to build, own and operate a new deep-water marine terminal.
TransCanada has been out in the field collecting data and engaging with Aboriginal and stakeholder groups for the past several months as part of its initial design and planning work for the project and expects to proceed with the necessary regulatory applications for approvals to construct and operate the pipeline project and terminal facilities in early 2014. Energy East is anticipated to be in service by late-2017 for deliveries in Quebec and 2018 for deliveries to New Brunswick.
"Gathering input and answering questions people have about Energy East is a fundamental first step in our project development process," Girling said. "We are holding dozens of public open houses and meetings with landowners, community groups and government leaders across the country to find out how we can make Energy East the safest, most environmentally responsible pipeline possible, and maximize the benefits it will bring to all stakeholders."
While Energy East will use a portion of the Canadian Mainline's underutilized natural gas capacity, TransCanada is committed to continuing to meet the contracted needs of all of its gas customers.
For more information about the Energy East Pipeline project and to download the full Deloitte report, visit the project websites at: www.energyeastpipeline.com or www.oleoducenergieest.com.
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