Benefits for Canadians

Benefits For Canadians

Northern Gateway is an important project for Canada because Canada is an oil exporting nation, and has been for 60 years. Northern Gateway would provide Canada access to growing Asian and Pacific Rim economies. It’s clearly in our national interest to have competition for our resources, in the same way that it is important for B.C.’s forest and mining industries to access markets outside North America.

  • At $5.5 billion, the Northern Gateway Project is the largest private investment of capital in the history of British Columbia. 
  • The Northern Gateway Project will bring significant, lasting benefits to the economy including:
    • $270 billion in GDP over 30 years
    • $400 million in employment and contracts for Aboriginal communities and businesses;
    • $4.3 billion of labour-related income across Canada during construction;
    • $2.6 billion in local, provincial and federal government tax revenues; and
    • 1,150 long-term jobs throughout the Canadian economy.
  • Northern Gateway will draw upon over 60 years of Enbridge experience to ensure the Project is designed and built to world-class safety standards.
  • The project has third-party financial support from both the supply side and the market side.
  • Total local, provincial and federal government tax revenues during 30 years of operations will be approximately $2.6 billion; this includes about $36 million per year estimated to be paid by Northern Gateway as local property taxes
  • About 1,150 long-term job opportunities throughout the Canadian economy, including 104 permanent operating positions created with Northern Gateway and 113 positions with the associated marine services
  • About 62,700 person-years of employment will be created throughout the Canadian economy during the construction phase of the project, with 3,000 direct on-site workers required during the peak period of construction
  • 2,000–3,000 workers will be directly employed during the peak periods of project construction
  • Northern Gateway provides Canada access to fast-growing Asia and Pacific Rim economies. It’s clearly in our national interest to have competition for our resources
  • Canada is one of the world’s few oil-producing countries that is able to increase production to meet increasing global demand, and at the same to time offer political stability, the rule of law, and a demonstrated commitment to improving environmental standards
  • While not turning their backs on their traditional U.S. markets, Canadian producers will be able to access new west coast U.S. and growing Asian markets
  • The Project will facilitate more investment in Canada
  • The Project will provide western U.S. markets with access to a long term, stable supply of energy
  • The Project will bring significant and lasting benefits to the economies and the people of northern B.C. and Alberta in an environmentally safe and sustainable way
  • Northern Gateway will provide a net benefit to Canada by opening a secondary market for Canada’s oil export trade with emerging Asian markets, and strengthen the nation’s position as a global energy producer

Project Need & Public Interest

  • Projections use the 2009 CAPP forecast as basis for supply
  • Over 10 year period after project start up: 
    • Synthetic crude pricing would rise $2.04/bbl
    • Athabasca Dilbit would increase $3.00/bbl
  • Would result in annual producer revenues increasing by $2.39 billion in the first full year growing to $4.47 billion by 2025.
  • When adjusted for Northern Gateway toll, increased transportation costs on the Enbridge mainline (due to volume decreases), as well as increased Canadian refinery feedstock costs the net benefit to the Canadian Oil and Gas industry would be $28 billion over the first 10 years
  • Total benefits to all Canadians over a 30 year period (direct and indirect benefits, including capital program, operations and net back effects on producers):
    • GDP would increase $270B
    • Labor income - $48B
    • Employment years – 558,000
    • Federal, Provincial and Territorial Government revenues - $81B
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Comments
  • Depti manhas, Apr 03rd, 2013 (1 year ago)

    I think we should have the northern gate way pipeline because it will bring canada alot of money also they have a good way to control if there is ever a leak

  • J, Feb 10th, 2013 (2 years ago)

    I'm on neutral grounds here. This project has some positive impacts on the economy of Canada, but it has some negative environmental, and political issues. The project will increase the GDP of Canada by 270 billion dollars (through a course of 30 years), and will create many job opportunities for Canadians (mostly from B.C though). Canada also has a chance to create safe relations with other industrial and developing countries, such as China and India, without causing any disturbances with the current exchange of oil with the U.S. The negative aspects of this project is that the pipelines will be built on traditional Aboriginal grounds, and if any leaks or spills occur, it can damage the wildlife, and mainly the wild salmon that live the rivers. The project was also strongly discouraged by many British Colombians in a recent poll as addressed by Wikipedia. In my opinion, I think that this project is a good idea, but I would discourage Enbridge from constructing the pipelines, until proper safety issues are analyzed and applied.

  • Jason, Dec 07th, 2012 (2 years ago)

    Thanks for the info, I consider myself an environmentalist but to a realistic degree. I know we need to export our oil from here or another route. As much as people say we need to slow development, I know that is a completely unrealistic concept. Plus in all honesty, the biggest impacts to the climate is likely coal, not oil. Especially in larger developing countries. Just keep investing into renewable energy as much as possible, so future generations have something to fall back on.

  • Northern Gateway, Dec 06th, 2012 (2 years ago)

    Hi Jason, thanks for joining in the conversation.

    Did you see our blog post about the seismic events off the coast of B.C. last month? http://www.northerngateway.ca/news-and-media/northern-gateway-blogs/pipeline-safety/earthquake-on-the-queen-charlotte-fault/

    Here's a video discussing seismicity along the pipeline route and how our geotechnical work has influenced, and will continue to influence, the pipeline route design: http://www.northerngateway.ca/project-details/route-safety/

    There's definitely market demand for western Canadian crude oil in eastern Canada. Enbridge has made application to the National Energy Board to reverse the flow of its existing Line 9 system to deliver crude oils to refineries in Sarnia and Montreal. Here's more info about that project: http://www.enbridge.com/line9

    Retail gas prices—the price we pay at the pump to fill our cars—currently reflects the global crude price primarily. Northern Gateway can't effect global crude prices and therefore is not expected to have a marked impact on Canadian gas prices. Here's more discussion on this issue: http://www.northerngateway.ca/news-and-media/northern-gateway-blogs/oil-and-energy/gas-price-hikes-not-expected/ & http://www.northerngateway.ca/news-and-media/northern-gateway-blogs/trade-diversification-for-canada/robyn-allan-s-flawed-analysis-misrepresents-gateway-economic-benefits-case/

  • Northern Gateway, Dec 06th, 2012 (2 years ago)

    Hi Terry, thanks for your comment and questions.

    You're right, the Northern Gateway project is still in the midst of an environmental assessment—we think the project will be the most comprehensively scrutinized pipeline in Canada: http://www.northerngateway.ca/news-and-media/northern-gateway-blogs/pipeline-safety/the-most-comprehensively-scrutinized-pipeline-ever/

    We're advertising to start a conversation about the project. We're sharing some facts about the project with viewers and inviting them to our website to learn more, ask questions and discuss issues related to the project. We're glad you joined in!

    Enbridge Northern Gateway is paying for the ads.

  • Jason, Dec 05th, 2012 (2 years ago)

    The amount of jobs doesn't seem that significant. Recently we have noticed a few natural phenomenon on the pacific coast. Earthquakes and Tsunamis in the Pacific ring of fire are a constant possibility. Even a minor disruption could have huge impacts on the project. Then on top of that, wouldn't selling to Asia first when we don't even have Alberta oil on the east coast negatively affect the cost of gas for us?

  • Terry Robinson, Dec 05th, 2012 (2 years ago)

    I see you're spending huge amounts of money advertising the benefits of your project. Since you don't have the results of the environmental assessment, isn't this massive expense a bit premature? Or is the Canadian public paying for it through tax incentives?

  • Kurt Hassl, Nov 04th, 2012 (2 years ago)

    I think the pipeline is too dangerous. Let's save our environment!

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