6 BIG Reasons Why New Pipelines Make Canada Stronger

6 BIG Reasons Why New Pipelines Make Canada Stronger

6 Reasons Why New Oil and Natural Gas Pipelines Make Canada Stronger

Canada is one of the world's most resource-rich countries, but resources alone do not create prosperity. To turn the energy beneath our feet into jobs, government revenues, and long-term economic opportunity, Canada needs the infrastructure to move those resources safely and efficiently to global markets.

This is why pipelines matter.

From job creation and Indigenous partnerships to market diversification and national sovereignty, new oil and natural gas pipeline projects can strengthen Canada in meaningful ways. As global demand for Canadian energy rises, building pipelines is about more than supporting our trading partners – it is about building a stronger, more resilient future for Canadians.

Below are six ways new oil and natural gas pipelines can strengthen Canada, with examples from past and potential future projects.


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#1 – Pipelines Create Much-Needed Jobs & Opportunity

New pipelines create major employment opportunities for Canadians and support thousands of families, businesses, and communities nationwide. These projects provide critically important work not only for operators and engineers, but also for suppliers, contractors, manufacturers, Indigenous businesses, and local service companies – and not just in energy-rich provinces, but also across supply chains located in Ontario and Quebec.

Coastal GasLink (CGL), for example, supported more than 25,700 full-time job equivalents in British Columbia [1]. According to the latest data available, the Trans Mountain Expansion (TMX) employed nearly 38,000 workers, including about 3,670 Indigenous Peoples [5], while also generating an estimated $11 billion in construction wages and another $3.7 billion in operating wages through 2043 [4]. Looking ahead, the Prince Rupert Gas Transmission (PRGT) pipeline is expected to support 6,000 to 8,000 direct jobs at peak construction [6].

New pipelines clearly create the kind of jobs and opportunities Canadians need. And with new potential projects on the horizon, these pipelines could give Canadians a lot to look forward to.

#2 – Pipelines Support a Stronger Canadian Economy

New pipelines support a stronger, more prosperous Canada by safely and efficiently transporting more oil and natural gas to markets abroad. With sufficient pipeline capacity to diversified customers, Canada can attract more investment, increase exports, improve productivity, maximize the value of its resources, and create broader economic benefits that reach far beyond the energy sector.

The economic benefits of pipeline development are enormous. CGL, for example, generated $13 billion in gross domestic product (GDP) for the Canadian economy [1]. The now-cancelled Northern Gateway pipeline project was once estimated to have a $300 billion GDP impact on Canada’s economy over its lifetime [2]. Looking ahead, adding 1.5 million barrels per day of additional oil export pipeline capacity could increase Canada’s real GDP by an average of $31.4 billion annually between 2027 and 2035 – totalling more than $280 billion – while supporting an estimated 112,000 more jobs across the country [7].

While existing projects continue to show their economic value, new pipelines could deliver even greater economic benefits for Canadians. At a time when Canada needs economic growth, capital investment, and increased competitiveness, expanding our pipeline infrastructure could help build a stronger, more prosperous future.

#3 – Pipelines Generate Government Revenues to Support Our Quality of Life

Beyond jobs and economic growth, pipelines also help generate the public revenues that support Canadians’ standard of living. By moving more oil and natural gas to market, pipeline infrastructure helps drive stronger company revenues, generate more royalties and corporate taxes, and typically increases the personal income tax base that helps our governments fund the social programs and services that Canadians rely on.

Trans Mountain offers a clear example of such benefits. Since beginning operations in mid-2024, it has generated $2.6 billion in interest and dividends for Canada’s federal government [3]. In the second quarter of 2026 alone, Canada’s four major oil companies were estimated to pay $11.3 billion in royalties and taxes, funds that support schools, hospitals, roads, and other essential public services across the country [8].

In short, public funds generated from pipelines matter for every Canadian. As our governments face growing pressure to fund healthcare, education, and infrastructure, pipeline-related income can strengthen the country’s fiscal position and improve Canadians’ overall quality of life by supporting the programs we hold dear.

#4 – Pipelines are a Path to Indigenous Reconciliation

Pipelines make Canada stronger by playing an integral role in advancing Indigenous economic reconciliation. Increasingly, Indigenous communities are not only participating in major energy projects as workers, service providers, or contractors, but also as partners, equity owners, and long-term beneficiaries. For First Nations, this shift offers a meaningful, practical path toward greater self-determination, more own-source revenues, and shared prosperity.

CGL is a strong example of Indigenous ownership. Sixteen of the 20 First Nations along the pipeline route purchased a 10 per cent equity stake in the project, creating long-term revenue-generating opportunities for their communities [9]. During construction, CGL also spent $1.8 billion on contracts with local and Indigenous businesses, while First Nations workers made up a substantial share of the pipeline's workforce [1]. Similarly, TMX signed more than 69 benefit agreements with over 81 Indigenous communities along its route, valued at more than $650 million [10]. The pipeline expansion also spent more than $6 billion in contracts to Indigenous-led businesses during construction, while 10 per cent of all hires were Indigenous [10]. Today, it is rumoured that some Indigenous groups are looking at buying the pipeline from the federal government.

These critical partnerships show what is possible when major projects are developed alongside Indigenous communities. New pipelines help support Indigenous economic empowerment, create durable long-term revenues for their communities, and contribute to a more inclusive and socially cohesive Canada.

#5 – Pipelines Help Canada Diversify its Export Markets

Pipelines make Canada stronger by helping diversify energy exports to a broader international customer base. Canada has long relied on the U.S. as its primary export market, resulting in price discounts on our oil and natural gas compared to world benchmarks, weakening our ability to adapt during trade disputes, and leaving Canada more vulnerable to global market dynamics beyond our control.

The expanded Trans Mountain is a great example of what new coastal export pipelines can achieve for Canadians. Since May 2024, Trans Mountain has loaded 528 tankers, with 64 per cent heading to Asia [11], clearly showing that Canadian energy is in demand in overseas markets when the right infrastructure exists.

As Prime Minister Mark Carney said when visiting Alberta in July [YouTube, @MarkCarney – The World Wants to Do More with Canada (short)]:

“With this project and with Trans Mountain, we’ll shift from exporting 98% of our oil to the U.S. to about 66%... That’s a big shift. It means a higher price for all our oil, it means more options… and it means people want to do more with Canada because we can do more with them.”

With improved export capacity to global markets, Canada is better positioned to compete internationally, supply global demand, and capture greater value from its energy resources. New pipelines are an important part of that opportunity and can play an instrumental role in building a more independent, flexible, and globally competitive Canadian economy.

#6 – Pipelines Can Help Secure Canada’s National Sovereignty

New pipelines can also help Canada strengthen its national sovereignty by improving energy security and reducing dependence on foreign suppliers. A country as energy-rich as Canada should be able to move its own resources efficiently within its own borders and to global markets without unnecessary reliance on foreign infrastructure.

This issue is especially important when Canadians consider how much of our energy trade and transportation is tied to the United States. New east-west or west-to-central corridor projects could help Canada move more of its own oil and natural gas to domestic refineries and consumers, reducing reliance on foreign transit systems like Line 5 through Michigan and on imported supply. Projects such as the Northern Shield Energy Corridor address this national challenge by proposing infrastructure that directly connects Canada’s energy resources to domestic markets. More broadly, reducing Canada’s overreliance on foreign energy suppliers would give the country more control over its economic future and more leverage in an ever-changing global environment.

In other words, pipelines are not only an economic issue — they are a nation-building issue. If Canada wants to be more self-reliant, more secure, and better positioned to defend its interests at home and abroad, then new pipelines can be an important part of that strategy.

Canada Needs More Oil & Natural Gas Pipelines

The world needs more pipelines - landing page banner

New pipelines are about more than energy infrastructure — they’re about jobs, economic growth, public revenues, Indigenous reconciliation, export diversification, and national strength.

If Canada wants to build a more prosperous, resilient, and self-reliant future, investing in the energy infrastructure needed to move our resources to market will be a critically important part of that path. Join us today to learn more!

SOURCES:

1 - https://www.coastalgaslink.com/

2 - https://globalnews.ca/news/1381229/facts-and-figures-on-the-northern-gateway-pipeline/

3 - https://www.theglobeandmail.com/business/article-trans-mountain-pumps-450-million-into-federal-coffers-as-pipeline-runs/

4 - https://www.abenergycentre.ca/oil/a-matter-of-fact-the-trans-mountain-expansion-is-good-for-canada/

5 - https://www.transmountain.com/tmep-benefits

6 - https://www.princegeorgecitizen.com/local-news/prgt-pipeline-expecting-final-investment-decision-in-early-2026-11665939

7 - https://www.atb.com/siteassets/business/special-reports/canadas-gdp-atb-economics-series-with-studio.energy-part-4.pdf

8 - https://x.com/ExnerPirot/status/2077400486278517012

9 - https://www.capp.ca/en/our-priorities/indigenous-partnerships/partnerships/

10 - https://www.canada.ca/en/campaign/trans-mountain.html

11 - https://edmontonjournal.com/business/asia-canada-oil-alberta-trans-mountain