This week, Kinder Morgan Inc. announced it would stop spending money on the Trans Mountain pipeline expansion between Alberta and B.C.
Here's the missed economic opportunity if the pipeline is cancelled.
The Trans Mountain pipeline is a $7.4 billion dollar project that carries crude and refined oil from Alberta to the west coast of British Columbia. Kinder Morgan president and CEO Steve Kean issued an ultimatum for the Canadian federal government to intervene by May 31.
OMX estimated that the construction of the pipeline would have generated a $7.8 billion impact on Canada's GDP and created 32,930 jobs*. The pipeline would have continued to deliver approximately $3.7 billion annually in additional oil exports for the next 20 years and 16,465 jobs every year.
Total missed economic opportunity for Canada's GDP? $85.8 billion. ($7.8 billion for initial construction and $3.9 billion annually for 20 years.)
Ottawa approved the project a year and a half ago but has faced opposition from B.C. government and local environmental groups.
*Jobs defined as person years of employment