TransCanada report says Energy East will pump $297M into economy
TransCanada Corp. compiled economic data after Saint John requested more details about the Energy East project
The proposed Energy East pipeline would inject $297 million into Saint John's economy during construction, according to a new TransCanada Corp. report.
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The document, which is dated April 13, says labour income associated with the construction phase of the project will total $234 million.
If it is built, the 4,500-kilometre crude oil pipeline will end in Saint John, with the city hosting a marine export terminal and tank farm.
Once the terminal begins to operate — says the company's report — it will generate 97 person years of employment annually. A person year is defined as the equivalent of one full time equivalent job, which could be a combination fo full-time, part-time and seasonal, for one year.
The numbers represent direct and indirect jobs during the construction phase of the project.
Tim Duboyce, a TransCanada spokesperson, said construction of the marine terminal and tank farm would generate a combined 1,715 person years of employment peaking at 1,060 workers in 2019.
Duboyce said the projection of 3,716 person years comes from a Conference Board of Canada study looking at overall employment increases expected in Saint John during the construction phase of the project.
The information was compiled and sent to the city in response to a series of information requests made by city council in January.
Mayor Mel Norton said, at the time, the questions were designed to ensure the city and TransCanada reach "real understandings" before the regulatory hearing process started.
An earlier estimate given to city council said the project would generate $5 million in annual property taxes.
TransCanada said the marine terminal will be a joint venture between Energy East and Irving Oil and the venture will lease land from Irving Oil.
The property to be utilized, according to the document, will be subject to municipal and provincial taxation and "no alternative tax arrangement is being contemplated."
The proposed 4,600-kilometre pipeline would carry 1.1 million barrels a day of oilsands crude from western Canada to refineries in Quebec and New Brunswick. It would terminate at Irving Oil's Canaport facility, which is located at the entrance to Saint John Harbour.
The in-service date for the $12-billion project is 2020.
The pipeline project has been controversial, especially in Quebec.