TransCanada Corp.'s proposed west-east pipeline could create 10,000 jobs and generate $10 billion in additional GDP during the construction phase, according to an economic analysis released on Tuesday.
The Calgary-based company released an independent report prepared by Deloitte on Tuesday morning.
The report shows 2,300 jobs will be created during the development period and 7,700 during the construction phase.
The Deloitte report estimated the pipeline project could add $10 billion in GDP across the country.
"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, the company's president and chief executive officer, in a statement.
The Energy East pipeline project, which still needs regulatory approval, would send 1.1 million barrels of oil per day from Western Canada to refineries and export terminals in Eastern Canada.
The corporation announced in August it would move forward with the project and it has been holding meetings in New Brunswick to discuss the pipeline with citizens in communities that could be affected.
TransCanada has estimated the project will cost $12 billion, excluding the transfer value of Canadian Mainline natural gas assets.
The company is proposing to convert roughly 3,000 kilometres of natural gas pipeline on its existing Canadian Mainline route so it can carry crude oil.
It would also construct 1,400 kilometres of new pipeline to carry crude oil into Saint John, where it will end at the Canaport LNG terminal.
The economic analysis also suggested the project would sustain 1,000 full-time jobs across the country during its 40-year operations phase.
The Deloitte report suggested the pipeline project would create 332 direct jobs during the three-year development phase and 1,095 direct jobs in the three-year construction phase in New Brunswick. When the consultant looked at indirect jobs and induced jobs, those numbers grow to 868 and 2,866 jobs for the province.
The pipeline would mean 121 direct jobs during the 40-year operations phase.
The project would also generate $266 million in tax revenues during the development and construction phases and $428 million during the operations phase.
The GDP impact for New Brunswick would be $1.1 billion in the development and construction period and $1.6 billion during the 40-year operations phase.
"The study, obviously, breaks out the benefits to New Brunswick and … it is a very significant benefit given that a lot of the new construction is going through the province of New Brunswick," said TransCanada's Alexander Pourbaix, the president of energy and oil pipelines.
Some municipalities, such as Edmundston, have already raised concerns about the proposed route of the project.
Pourbaix said the pipeline company is busy working with community groups to help address any concerns.
"We don't come up with this route by ourselves, we come up with it in a combination of the work we do, but listening very closely to stakeholders along the route," he said.
"We are aware of those comments. We are engaging with stakeholders in that part of the province."
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