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.
Ministry of Energy, Mines and Natural Gas