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New Study Projects Energy East Will Boost Economy Across Canada

New Study Projects Energy East Will Boost Economy Across Canada 
Deloitte report estimates thousands of jobs and billions of dollars
in economic growth to be generated along West-East oil pipeline path 
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: 
GDP growth  
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).  
Job creation  
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. 
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.  
Tax revenues  
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. 
With more than 60 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American
energy infrastructure including natural gas and oil pipelines, power
generation and gas storage facilities. TransCanada operates a network
of natural gas pipelines that extends more than 68,500 kilometres
(42,500 miles), tapping into virtually all major gas supply basins in
North America. TransCanada is one of the continent's largest
providers of gas storage and related services with more than 400
billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns or has interests in over 11,800 megawatts
of power generation in Canada and the United States. TransCanada is
developing one of North America's largest oil delivery systems.
TransCanada's common shares trade on the Toronto and New York stock
exchanges under the symbol TRP. For more information visit:
www.transcanada.com or check us out on Twitter @TransCanada or
http://blog.transcanada.com.  
Conference Call  
TransCanada's President and CEO Russ Girling, President of Energy and
Oil Pipelines Alex Pourbaix, President of the Energy East Pipeline
project Steve Pohlod and representatives from Deloitte will host a
conference call this morning from New Brunswick and Montreal to
discuss and answer questions from the media about Deloitte's analysis
of the economic benefits of the Energy East project in English and
French. TransCanada spokespeople will be available directly afterward
in Montreal and Calgary for follow-up interviews.  


 
Date:     Tuesday, September 10, 2013                                       
                                                                            
Time:     6 a.m. (MDT) / 9 a.m. (ADT)                                       
                                                                            
Dial-In:  To access the live webcast of the news conference visit:          
          http://www.gowebcasting.com/4809                                  
                                                                            
          Audio feed: 416.695.7806 / 888.789.9572                           
          Passcode: 1038332                                                 
                                                                            
          The conference call will be available for replay until October 10 
          on the following:                                                 
          905.694.9451 / 800.408.3053                                       
          Passcode: 4477833                                                 

 
FORWARD LOOKING INFORMATION  
This publication contains certain information that is forward-looking
and is subject to important risks and uncertainties (such statements
are usually accompanied by words such as "anticipate", "expect",
"would", "will" or other similar words). Forward-looking statements
in this document are intended to provide TransCanada security holders
and potential investors with information regarding TransCanada and
its subsidiaries, including management's assessment of TransCanada's
and its subsidiaries' future financial and operation plans and
outlook. All forward-looking statements reflect TransCanada's beliefs
and assumptions based on information available at the time the
statements were made. Readers are cautioned not to place undue
reliance on this forward-looking information. TransCanada undertakes
no obligation to update or revise any forward-looking information
except as required by law. For additional information on the
assumptions made, and the risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to
TransCanada's Quarterly Report to Shareholders dated July 26, 2013
and 2012 Annual Report filed under TransCanada's profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange Commission at
www.sec.gov and available on TransCanada's website at
www.transcanada.com. 
Backgrounder  
Economic Analysis of Energy East Pipeline Project 
TransCanada commissioned Deloitte & Touche LLP to conduct an economic
analysis of the proposed $12-billion Energy East Pipeline project to
determine the jobs and other economic benefits the project will
create for the entire country. Deloitte used Statistics Canada's
Input/Output model to estimate the impacts on gross domestic product
(GDP), tax revenues and job creation in all provinces and territories
across Canada. The Input/Output model measures direct, indirect and
induced economic effects of large infrastructure projects in Canada.
Direct impacts are those that involve the directly-affected industry
under study. Indirect impacts are those created in industries
directly tied to the pipeline project, such as suppliers and
equipment manufacturers. Induced impacts reflect economic activity
resulting from direct and indirect effects of the project, such as
consumer spending due to increased household incomes.  
Deloitte's findings for the Energy East Pipeline project are
summarized as follows: 
GDP growth  
Energy East will generate an estimated $10 billion in additional GDP
for the Canadian economy during the six-year development and
construction phase (2013-2018) and $25.3 billion during the 40-year
operations phase (although regular maintenance is expected to extend
the life of the pipeline beyond 40 years).  
GDP impact of project by province (2013 $Millions) 


 
----------------------------------------------------------------------------
                       Development &                                        
                  Construction Phase    Operations Phase                    
                           (6 years)          (40 years)            Combined
----------------------------------------------------------------------------
Ontario                        2,694              10,335              13,029
----------------------------------------------------------------------------
Alberta                        1,742               6,128               7,870
----------------------------------------------------------------------------
Quebec                         3,114               3,236               6,350
----------------------------------------------------------------------------
New Brunswick                  1,170               1,629               2,799
----------------------------------------------------------------------------
Saskatchewan                     577               1,980               2,557
----------------------------------------------------------------------------
Manitoba                         361               1,446               1,807
----------------------------------------------------------------------------
British Columbia                 244                 396                 640
----------------------------------------------------------------------------
Others                           144                 147                 291
----------------------------------------------------------------------------
Total                         10,046              25,297              35,343
----------------------------------------------------------------------------

 
Job creation  
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. 
Approximately half (48 per cent) 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 (49 per cent) of the jobs in the operations
phase will be in the oil and natural gas pipelines and power
generation and transmission industries. Job estimates were calculated
for direct, indirect and induced jobs related to a wide range of
products and services required for the project, including trucking,
banking, automotive supplies, restaurants and food services, pipe and
equipment manufacturing, mechanical repairs, management, scientific
and technical consulting, clothing suppliers and hotels.  
FTE job creation per year, by province, development and construction
phase 


 
----------------------------------------------------------------------------
                     Development Phase              Construction Phase      
                          (3 years)                     (3 years)           
----------------------------------------------------------------------------
                Direct Indirect Induced Total Direct Indirect Induced  Total
----------------------------------------------------------------------------
Quebec             837      878     502 2,217  2,764    2,899   1,656  7,319
----------------------------------------------------------------------------
Ontario            528      854     500 1,882  1,743    2,819   1,652  6,214
----------------------------------------------------------------------------
Alberta            382      510     241 1,133  1,260    1,684     796  3,740
----------------------------------------------------------------------------
New Brunswick      332      407     129   868  1,095    1,344     427  2,866
----------------------------------------------------------------------------
Saskatchewan       159      215      76   450    524      711     250  1,485
----------------------------------------------------------------------------
Manitoba           104       97      52   253    343      320     170    833
----------------------------------------------------------------------------
British                                                                     
 Columbia            0      116      88   204      0      383     290    673
----------------------------------------------------------------------------
Other                0       75      36   111      0      247     121    368
----------------------------------------------------------------------------
Total            2,342    3,152   1,624 7,118  7,729   10,407   5,362 23,498
----------------------------------------------------------------------------

 
FTE job creation per year, by province, operations phase 


 
----------------------------------------------------------------------------
                                            Operations Phase                
                                               (40 years)                   
----------------------------------------------------------------------------
                                  Direct    Indirect     Induced       Total
----------------------------------------------------------------------------
Ontario                              181       1,086         539       1,806
----------------------------------------------------------------------------
Alberta                              418         200         261         879
----------------------------------------------------------------------------
Quebec                               203         162         172         537
----------------------------------------------------------------------------
New Brunswick                        121         205          59         385
----------------------------------------------------------------------------
Manitoba                              70         126          69         265
----------------------------------------------------------------------------
Saskatchewan                          94          97          56         247
----------------------------------------------------------------------------
British Columbia                       0          37          63         100
----------------------------------------------------------------------------
Others                                 0          15          18          33
----------------------------------------------------------------------------
Total                              1,087       1,928       1,237       4,252
----------------------------------------------------------------------------

 
Tax revenues  
The development and construction phase is expected to generate an
additional $3 billion in tax revenues for municipal, provincial and
federal governments. The operations phase will result in $7.2 billion
in added tax revenues.  
Total government tax revenue, by province (2013 $M) 


 
----------------------------------------------------------------------------
                       Development &                                        
                  Construction Phase    Operations Phase                    
                           (6 years)          (40 years)            Combined
----------------------------------------------------------------------------
Ontario                          798               2,864               3,662
----------------------------------------------------------------------------
Alberta                          463               1,734               2,197
----------------------------------------------------------------------------
Quebec                         1,089                 936               2,025
----------------------------------------------------------------------------
Saskatchewan                     194                 627                 821
----------------------------------------------------------------------------
New Brunswick                    266                 428                 694
----------------------------------------------------------------------------
Manitoba                         111                 505                 616
----------------------------------------------------------------------------
British Columbia                  59                  82                 141
----------------------------------------------------------------------------
Others                            34                  29                  63
----------------------------------------------------------------------------
Total                          3,014               7,204              10,218
----------------------------------------------------------------------------

Contacts:
TransCanada
Media Enquiries:
Shawn Howard/Grady Semmens/Philippe Cannon (Montréal)
403.920.7859 or 800.608.7859 
TransCanada
Investor & Analyst Enquiries:
David Moneta/Lee Evans
403.920.7911 or 800.361.6522
 
 
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