Economic Benefits of the Trans Mountain Expansion Project
We approved the Trans Mountain Expansion (TMX) project because it is in the public interest and will benefit Canadians by creating thousands of good, middle-class jobs increasing access to global market and generating more revenues to various levels of government.
Explore how the project benefits:
How does this benefit Canadians?
As of September 30, 2019, Trans Mountain Corporation (TMC) and its contractors have hired more than 2,200 people for the project, including Indigenous, local and regional employees. This workforce includes heavy equipment operators, trades people, environment and safety compliance roles, engineers, construction managers and administration staff.
At peak construction, there are expected to be 5,500 people employed in the construction of the pipeline on sites in Alberta and British Columbia.
TMX will also create economic benefits for many Indigenous communities, such as through contracting, financial compensation, and employment and training opportunities.
How does this benefit the transition to a clean economy?
Every dollar the federal government earns from the project will be invested in Canada’s clean energy transition. The Department of Finance estimates that additional federal corporate income tax revenues could be around $500M per year once the project is completed.
These tax revenues and any profits earned from the sale of the pipeline will be invested in the clean energy projects that power our homes, businesses and communities for years to come.
How does this benefit industry?
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 continues to enhance investor confidence and public trust by demonstrating that good projects can proceed following a robust environmental assessment and regulatory review.
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 amount includes an estimated:
- $5.7 billion for B.C.
- $19.4 billion for Alberta
- $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.
How will the project economically benefit Indigenous communities?
The government committed to exploring the possibilities of Indigenous economic participation in the TMX project through the Economic Participation initiative, managed by the Department of Finance. Initial engagement was conducted in July and August 2019 to understand communities’ views on how Canada should approach the broader engagement process and how economic participation in the project might be structured. The government is considering the input received during the initial engagement and is currently developing its next steps.
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 agreements with 58 Indigenous communities worth over $500 million and the Project, when complete, will generate over $1 billion of Indigenous-based contract awards.
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