Canada currently exports 99% of their oil to the United States at discounted prices. In order to improve this situation, it is proposed to build a 1,177km twin pipeline (36" and 20" diameter pipes) from Northern Alberta through British Columbia (B.C.) to the deep-water port of Kilimat in B.C. Following the completion of this $6.5 billion project, the pipelines will have the capacity to carry up to 525,000 barrels of oil per day which will subsequently be transported to new markets in the Pacific Rim, including Japan, China and India. These new markets will effectively double the size of the market Canada can access and will protect Canada by moving away from being tied to one customer.
Economically the project represents greater than $300 billion in extra GDP over 30 years to Canada. The project is expected to generate $1.2 billion in tax revene for B.C. alone.
Northern Gateway will will help create approximately 3,000 new construction jobs and 560 new long-term jobs, as well as an additional 1,150 manufacturing and maintenance jobs to maintain the pipelines. These jobs are expected to generate $32 million per year in salaries.
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