Enbridge Pipeline Construction Economic Impact Study

Tuesday, June 13, 2017

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Enbridge Line 3 Replacement Project to Support 8,600 Jobs in Northeast Minnesota: New Economic Impact Study from UMD's BBER

 

Duluth, MN: The Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth’s Labovitz School of Business and Economics recently released the results of the Enbridge Line 3 Pipeline Replacement Construction Economic Impact Study (EIS). The Area Partnership for Economic Expansion (APEX) requested this study be conducted to help stakeholders better understand the significant contribution this project will provide. The BBER concluded that the project will create approximately 8,600 jobs and will represent an investment of over $2.0 billion in the 15-county study area in the northern portion of the State of Minnesota.

“APEX supports the Enbridge Line 3 Replacement Project as it represents a significant investment in infrastructure for the safe transportation of a vital energy product,” said Brian Hanson, APEX President and CEO. “The study results confirm that the total economic impact of this project will strengthen our region with additional direct and indirect jobs for our local workforce.”

The study leveraged IMPLAN economic modeling data and software, driven by project budget information provided by Enbridge, to determine the Company’s two-year (2019-2020) Line 3 Replacement Project will:
 

  • Result in a total economic impact of over $2.0 billion in Minnesota - $1.5 billion will be contributed by Enbridge
  • Directly and indirectly support 8,600 jobs
    • 4,200 construction jobs
      • 2100 local
      • 2100 non-local
    • 2,800 retail/hospitality sector jobs
    • 1,600 local supplier/manufacturer jobs
  • Contribute approximately $334 million in total employee wages and benefits
  • $162 million (~50% of total wages) will go to local workers
  • Have a value added impact of $745 million on the region
  • Add $162 million in total economic impact from non-local worker spending on meals, lodging, and incidentals while working in the study area.

The Line 3 Replacement Project impacts primarily rural, northern Minnesota counties in the study area including: Kittson, Marshall, Pennington, Red Lake, Polk, Clearwater, Beltrami, Hubbard, Wadena, Cass, Crow Wing, Itasca, Aitkin, Carlton and Saint Louis counties.

The majority of the project’s economic impacts will come from the construction expenditures, including site preparation, procurement, engineering and environmental costs. Study results also indicated that the retail and hospitality sector should expect an increase in economic activity as a direct result of new spending from non-local workers during the two-year duration of the project. Other accommodations including hotels/motels, resorts, campgrounds and RV parks and full-service restaurants should also experience increased employment needs.

“Jobs for Minnesotans embraces Enbridge’s private investment in Minnesota and also acknowledges the benefits to the environment by moving this project forward. Thousands of local positions will be created by this critical investment project,” stated Nancy Norr, Chair for Jobs for Minnesotans and Director of Regional Development for Minnesota Power, an ALLETE Company.

Enbridge’s Line 3 Replacement Project represents a significant investment in the state of Minnesota, with a project output of more than $2 billion, giving our state a much-needed economic boost and supporting thousands of good jobs for hard-working Minnesotans.

An open comment period began May 15, 2017 and will conclude on July 10. In addition, public hearings are being held in Cloquet and St. Paul on June 13, 2017. More information is available at the Minnesota Department of Commerce website.

 

Click here for more information and full results of the study.

 

Category: Investors




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