TransCanada’s East Coast Pipe to Deliver $34 Billion GDP Boost
Sept. 10 (Bloomberg) -- TransCanada Corp., the country’s second-biggest pipeline operator, said its proposed crude oil conduit to the Atlantic Coast from Western Canada (CWB) will generate a C$35 billion ($34 billion) boost to the economy during its construction and operation.
More than 10,000 full-time jobs will be created during construction and the project will support an additional 1,000 permanent posts once it begins service, TransCanada said today in a statement, citing a study it commissioned from Deloitte & Touche LLP. It will also deliver an extra C$10 billion in tax revenue.
The C$12 billion Energy East project, announced Aug. 1, would have a capacity of 1.1 million barrels a day and be in service by the end of 2017 for deliveries to Quebec and to New Brunswick in 2018. It involves converting part of a 3,000 kilometer (1,864 mile) natural gas pipeline and building 1,400 kilometers of new pipeline.
The project is separate from TransCanada’s proposed $5.3 billion Keystone XL pipeline to the Gulf of Mexico. Approval is pending from the U.S. government.
The Council of Canadians said last month the project would endanger waterways, citing oil spills caused by other pipeline operators. Enbridge Inc. (ENB) spilled 20,000 barrels of oil into the Kalamazoo River in Michigan in 2010 and Exxon Mobil Corp.’s Pegasus pipeline ruptured in March, sending 5,000 barrels of oil flowing through streets in Mayflower, Arkansas.
Enbridge Inc., also based in Calgary, is Canada’s largest pipeline operator by sales.
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