Economic Benefits of the Trans Mountain Expansion Project
The Government of Canada has approved the Trans Mountain Expansion (TMX) project because it is in the Canadian public interest and will benefit Canadians by creating thousands of good, middle-class jobs, increasing access to global markets and generating more revenues to various levels of government.
To mitigate and offset the environmental effects of the project, the government has accepted the 16 recommendations made by the National Energy Board and has amended six conditions. Additionally, the government is moving ahead to implement eight accommodations to address the concerns raised by Indigenous groups potentially impacted by the project.
After shipments from Burnaby to North American clients in British Columbia, Washington State and California are accounted for, there will be at least 500,000 barrels a day available for export to global markets.
Moving forward with TMX will help enhance investor confidence and public trust by demonstrating that good projects can proceed following a robust environmental assessment and regulatory review.
Investment in this new project was estimated by the Conference Board of Canada to create thousands of jobs during construction and hundreds during operation.
These will be good, middle-class jobs — in construction, engineering, finance and monitoring — many of which will provide opportunities for Indigenous communities along the 1147-kilometre pipeline route. In fact, TMX is expected to create millions of dollars in new economic benefits for Indigenous communities.
In the coming days, the government will be providing more information about how and when it plans to engage Indigenous groups in dialogue about opportunities to participate economically in the project.
Additionally, Trans Mountain Corporation — the current owner of the pipeline — has worked with communities to establish mutual benefit agreements (MBAs). These agreements are confidential and define a voluntary and mutually beneficial long-term relationship between the project and an individual Indigenous group. They can include contracting or procurement commitments, financial compensation, employment and training opportunities and emergency response or environmental measures funded by the company. To date, TMC has signed 48 MBAs totalling more than $400 million.
The project is estimated to generate $73 billion in increased revenues for producers over 20 years. Government revenues, meanwhile, are expected to increase by $46 billion over the course of the project’s construction and the first 20 years of operation. This includes an estimated:
- $5.7 billion for B.C.;
- $19.4 billion for Alberta; and
- $21.6 billion for the rest of Canada.
TMX will also help strengthen Canada’s advantage as a secure and stable global supplier of oil — now and in the future — while generating the revenues to fund its transition to a low-carbon future.
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