Thank you, Mr. Chairman.
Thank you for the opportunity to appear before your committee and to contribute to the study regarding energy security in Canada.
I am pleased to be able to provide you with an update on the Northern Gateway Pipelines. It's a project that has the potential to provide a fundamental and long-lasting boost to the economies of not only B.C., Alberta, and Saskatchewan, but all across Canada. It is a project of national strategic importance and significance.
Our country enjoys both a Pacific advantage and a world-class energy resource advantage. It is time for us to translate that competitive edge into increased market diversification and security, and stronger economic growth and opportunities.
Canada has an undeniably strong history of delivering on visionary projects that improve our security and position us for growth. From canals that connected industries to key markets, to the railway that linked the east to the west, or the Trans-Canada Highway that brought communities together across the nation, we have built infrastructure that has strategically positioned our country for long-term prosperity. Now the Northern Gateway Project is set to diversify energy markets and boost Canada's economic and global stature.
As you may be aware, the National Energy Board data from 2009 shows that less than 1% of Canada's petroleum exports went to any country other than the United States. Sole reliance on one market does not, cannot, and will not effectively position our country to capitalize on our world-class energy resources. Northern Gateway provides much-needed large-volume capacity to deliver Canadian energy to our Pacific trading partners.
In terms of some background on Northern Gateway, the proposal comprises two parallel pipelines extending nearly 1,800 kilometres from Edmonton to a marine terminal at the port of Kitimat in British Columbia. The projected cost for the project is $5.5 billion.
The port of Kitimat itself offers a safe and protected harbour to grow trade with Asia. I would like to share some key facts with the committee regarding the port and traffic off the north coast.
The project would add about one tanker movement a day to the existing shipping on the north coast. Northern Gateway will install what is among the most modern and sophisticated marine safety infrastructure in the world for this project. As a result, the status of our project will be similar to that adopted by Norway, which has had an excellent safety record for more than 30 years. The stringent technical infrastructure we will install will raise the safety bar for traffic on the north coast.
Our project will increase the potential volume of trade with our Pacific partners and generate an additional $2 to $3 of benefit for Canada for every barrel produced. In other words, the port of Kitimat is a key strategic component of Canada's Pacific advantage.
Last May we filed the regulatory application for the project with the National Energy Board. The application will be reviewed by the NEB as well as the Canadian Environmental Assessment Agency. Our filing began the formal public discussion and consultation regarding the project through what is known as the joint review panel. The JRP will consult with stakeholders and study the application to address key issues, including those related to aboriginal, marine, and environmental consideration.
I want to report to you that since 2002 we have been in dialogue with every first nation community along the right-of-way of our project. I am confident that when we have had a chance to present the marine and environmental safety records of our project and the benefits to their communities and to Canada, we will gain the support of most of the first nations communities involved.
I recognize that there have been debates and discussions in the House of Commons around introducing tanker bans off the north coast of British Columbia. It is important to remember that tankers currently safely call on Canada's ports from east to west, including Kitimat, and have done so for decades.
I would also like to take the opportunity to respectfully request that the work being conducted by the NEB and CEAA, two institutions created by Parliament, not be ignored in the rush to come to judgment without the benefit of reviewing or testing the evidence on the matter.
In conclusion, I would like to thank you for the opportunity to share a brief update with you today highlighting the importance of the Northern Gateway Pipelines, a project that will build on Canada's Pacific advantage to help ensure our nation's long-term prosperity and strong global standing as a responsible, sustainable, and ethical energy superpower.
The benefits for Canada are substantial, including a $270 billion increase in gross domestic product over 30 years. And the legacy of local investment, tax revenue, and jobs for the north further supports the significant opportunities from our project.
Thank you.