TransCanada Corporation (NYSE:TRP), the company trying to build the controversial Keystone XL pipeline, said Wednesday that one of its pipeline projects will bring crude oil from western Canada to eastern Canadian refineries and export terminals, generating billions of dollars in tax revenues and creating thousands of direct jobs.
The $12 billion Energy East Pipeline project will generate an estimated $35 billion in gross domestic product for Canada and $10 billion in government tax revenues, according to a study released by the Canadian-based energy giant on Monday.
The study estimated that the project will create 10,000 full-time direct jobs during the six-year development and construction of the project and 1,000 direct full-time jobs during 40 years of the pipeline’s operation.
This comes at a time when the Canadian company is seeking approval from the U.S. to start construction of the Keystone XL pipeline that will bring crude oil from Alberta to refineries in the U.S. Gulf Coast.
Many refineries in the U.S. Midwest and Canada are at capacity, and oil producers are looking toward Eastern refineries, as well as access to export terminals, and TransCanada's Energy East Pipeline is seen as one of the ways to help move the crude.
“I am very pleased with today’s announcement that Energy East is moving forward,” Alberta Premier Alison Redford said in August. “My government made a commitment to the project as part of our efforts to build new markets and get a fairer price for the oil resources Albertans own. This is truly a nation-building project that will diversify our economy and create new jobs here in Alberta and across the country.”