The Canadian Steel Producers Association (CSPA) welcomed Tuesday’s decision by the Government of Canada to approve the proposed Northern Gateway project, subject to 209 required conditions.
The Government of Canada agrees that, with the 209 recommendations laid out by the National Energy Board, the Northern Gateway project is in the best interest of Canada. The twin pipeline, which would transport Canadian energy resources more than 1,100 kilometers from Northern Alberta to new port facilities in Kitimat, B.C., holds the potential to generate significant direct and indirect benefits to Canada’s steel producers, their workers, and their communities.
“This pipeline project represents a major new opportunity to strengthen Canada’s energy export potential, and in the process, benefit from the expertise and ability of the Canadian steel industry to contribute to the Canadian economy.” said CSPA president Ron Watkins. “Our members are world-class steel manufacturers of products that will be needed to complete this important project.”
The $6.5-billion project is an example of the type of energy sector development that the CSPA advocates. “Responsible energy and other resource development projects in Canada, incorporating effective environmental safeguards and measures to address the concerns of affected communities and aboriginal Canadians, drives demand for many types of steel and other Canadian goods and services across the country,” Watkins said. “Canadian steel producers in many regions contribute to the growth of Canada’s energy sector, and benefit from it — as do their workers,” he added.
Canadian steel is a crucial link in Canada’s oil and gas supply chain, which generates 660,000 jobs across the country and an economic output of approximately $115 billion. With facilities in several provinces, Canada’s steel producers directly employ some 20,000 people and create an additional 100,000 spin-off jobs. Annual shipments total $13-$14 billion, with approximately $7 billion annually in exports. The industry purchases more than $9 billion of goods and services in Canada.