NEWS RELEASE · 12th February 2013
Minister of Energy, Mines, NG
The Ministry of Energy, Mines and Natural Gas has undertaken a study on the potential employment impacts created by LNG development in B.C.
Assuming two larger- and three smaller-sized LNG plants, along with supporting pipelines, the ministry anticipates on average more than 39,000 annual jobs will be created over a nine year construction period and 75,000 jobs once these plants are fully operational. This study has been prepared with an independent consultant.
Estimated construction jobs break down into three categories:
* 11,400 direct jobs - this mainly includes trades and other onsite skilled labour and professional services required to build the LNG projects.
* 22,100 indirect jobs - this includes employees working in industries that will be supplying goods and services to support project construction (e.g., materials, transportation, etc.).
* 5,900 induced jobs - when workers earn income for example, this can be used to purchase goods and services for themselves and their families in a variety of sectors that may be located in the communities near the LNG projects. This includes purchases of retail goods; food and beverages; residential home construction, renovations and repair; travel, arts, entertainment, recreation and accommodation.
Once the projects are constructed and fully operational they could result in the creation of:
* 2,400 direct jobs - this mainly includes permanent jobs to operate and maintain the plants and supporting pipelines on an ongoing basis.
* 61,700 indirect jobs - once LNG plants are operational, they require very large amounts of natural gas supply on an ongoing basis. A large part of these new jobs will be for new exploration and development of natural gas wells along with the goods and services industries needed to support that activity.
* 11,100 induced jobs - as with the construction phase, new jobs can be created in other sectors as workers and local businesses continue to earn incomes from LNG activities.
The nine-year construction phase for LNG projects is the most labour intensive aspect of such projects with regard to generating direct jobs. As that phase winds down, those direct jobs are expected to be replaced with ongoing jobs needed to maintain the plants and supporting pipelines, as well as for supporting exploration and development of additional natural gas needed to supply the LNG plants.
To ensure as many British Columbians as possible can benefit from this job creation and ensure these projects' proponents have the workforce required over the long-term, the provincial government has workforce plans in place to establish the necessary training opportunities.
While the number of jobs has been estimated in terms of full-time equivalent jobs, in reality, they will be comprised of full-time, part-time and seasonal jobs which means that the number of jobs noted earlier in fact could be higher.
An independent report providing further details on the LNG employment forecast will be provided commensurate with the release of Budget 2013.
Local jobs needed
Comment by C. Arnold on 15th February 2013
Dave B raises a very important point. With all the projects buzzing around here just keep in mind a few telling figures: Record high airport traffic and still some of the highest unemployment rates in the province right here in Terrace. It's pretty clear what is happening with a good number of the jobs. Now westjet is looking at Terrace, which could open up a direct path to Alberta for more payroll dollars from local projects.
Comment by David on 14th February 2013
I question the logic of the indirect jobs figure. Two thousand direct jobs will create 60,000 indirect jobs?
Indirect jobs usually refers to "spin-off," downstream jobs. In this case, for example, we could expect perhaps 200 increased jobs in retail and services as a result of the 2,000 new jobs. Therefore, what the government figures actually say is that 60,000 direct jobs in natural gas extraction will create about 2,000 indirect, "spin-off" jobs in processing.
Either the Ministry is staffed by people who have never studied economics at the post-secondary level, or , alternatively, they're being deliberately misleading.
worldwide fracking bans
Comment by Catherine on 13th February 2013
How many BC resident jobs??
Comment by Dave B on 13th February 2013
A very large number of the construction phase jobs will be out of province, out of country workers so the numbers created for spin off jobs via workers spending and investing in BC are skewed - look at Rio Tinto Alcan modernization.
Ministry of Corruption
Comment by Catherine on 13th February 2013
If it sounds to good to be true it probably is....latest headlines from 'The Straight Goods" http://powellriverpersuader.blogspot.ca
BRITISH COLUMBIA'S LNG CORPORATE WELFARE SCHEME EXPOSED
It's just a bloody trap!
Comment by Terry on 12th February 2013
How far can you run in a millisecond ?