Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

Billions in government revenue and thousands of jobs across provinces

By CEC Research
Oil pipeline construction in British Columbia. Photo courtesy Trans Mountain Corporation

Announced in 2006, the Northern Gateway project would have built twin pipelines between Bruderheim, Alta. and a marine terminal at Kitimat, B.C. 

One pipeline would export 525,000 barrels per day of heavy oil from Alberta to tidewater markets. The other would import 193,000 barrels per day of condensate to Alberta to dilute heavy oil for pipeline transportation. 

The project would have generated significant economic benefits across Canada.

Map courtesy Canada Energy Regulator

The following projections are drawn from the report Public Interest Benefits of the Northern Gateway Project (Wright Mansell Research Ltd., July 2012), which was submitted as reply evidence during the regulatory process.

Financial figures have been adjusted to 2025 dollars using the Bank of Canada’s Inflation Calculator, with $1.00 in 2012 equivalent to $1.34 in 2025.

Total Government Revenue by Region

Between 2019 and 2048, a period encompassing both construction and operations, the Northern Gateway project was projected to generate the following total government revenues by region (direct, indirect and induced):

British Columbia

  • Provincial government revenue: $11.5 billion
  • Federal government revenue: $8.9 billion 
  • Total: $20.4 billion

Alberta

  • Provincial government revenue: $49.4 billion
  • Federal government revenue: $41.5 billion 
  • Total: $90.9 billion

Ontario

  • Provincial government revenue: $1.7 billion
  • Federal government revenue: $2.7 billion 
  • Total: $4.4 billion

Quebec

  • Provincial government revenue: $746 million
  • Federal government revenue: $541 million 
  • Total: $1.29 billion

Saskatchewan

  • Provincial government revenue: $6.9 billion
  • Federal government revenue: $4.4 billion 
  • Total: $11.3 billion

Other

  • Provincial government revenue: $1.9 billion
  • Federal government revenue: $1.4 billion 
  • Total: $3.3 billion

Canada

  • Provincial government revenue: $72.1 billion
  • Federal government revenue: $59.4 billion 
  • Total: $131.7 billion

Annual Government Revenue by Region

Over the period 2019 and 2048, the Northern Gateway project was projected to generate the following annual government revenues by region (direct, indirect and induced):

British Columbia

  • Provincial government revenue: $340 million
  • Federal government revenue: $261 million 
  • Total: $601 million per year

Alberta

  • Provincial government revenue: $1.5 billion
  • Federal government revenue: $1.2 billion 
  • Total: $2.7 billion per year

Ontario

  • Provincial government revenue: $51 million
  • Federal government revenue: $79 million 
  • Total: $130 million per year

Quebec

  • Provincial government revenue: $21 million
  • Federal government revenue: $16 million 
  • Total: $37 million per year

Saskatchewan

  • Provincial government revenue: $204 million
  • Federal government revenue: $129 million 
  • Total: $333 million per year

Other

  • Provincial government revenue: $58 million
  • Federal government revenue: $40 million 
  • Total: $98 million per year

Canada

  • Provincial government revenue: $2.1 billion
  • Federal government revenue: $1.7 billion 
  • Total: $3.8 billion per year

Employment by Region

Over the period 2019 to 2048, the Northern Gateway Pipeline was projected to generate the following direct, indirect and induced full-time equivalent (FTE) jobs by region:

British Columbia

  • Annual average:  7,736 
  • Total over the period: 224,344

Alberta

  • Annual average:  11,798 
  • Total over the period: 342,142

Ontario

  • Annual average:  3,061 
  • Total over the period: 88,769

Quebec

  • Annual average:  1,003
  • Total over the period: 29,087

Saskatchewan

  • Annual average:  2,127 
  • Total over the period: 61,683

Other

  • Annual average:  953 
  • Total over the period: 27,637

Canada

  • Annual average:  26,678 
  • Total over the period: 773,662

The unaltered reproduction of this content is free of charge with attribution to Canadian Energy Centre Ltd.