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Issue link: http://digital.canadawide.com/i/411627
68 BCBusiness december 2014 cpimages ZERO-SUM GAME hERE iS a cERtain irony in the fact that, for all the work Enbridge has done to advance its Northern Gate- way Pipeline—and all the heat it's taken for so doing—it isn't the project's biggest beneficiary. It's not even close to the biggest, actually. That would be the oil producers in Alberta who want to fill it, and who would, accord- ing to a Public Interest Benefit Evaluation done by Wright Mansell Research on behalf of Northern Gateway in 2012, stand to take in an additional $114.8 billion over the life of the project as a result of the "lift" it would give to their realized oil prices. Enbridge isn't even second—that would belong to the federal government and its provincial counterparts throughout the country, whose treasuries would swell by $98 billion. And while it will do just fine, thank you very much, if Northern Gate- way gets built, the companies that would comprise Gateway's supply chain will do even better. "For every kilometre of pipe- line, there's about $4 million to $10 million spent," says Jason Zandberg, an analyst with Vancouver's PI Financial. "That's spent on prep work, construction, the steel and all the ancillary services around it." That said, Gateway isn't everyone's golden goose, and there are plenty of industries that could be negatively affected by its construction. So which ones are pulling the hardest for it to take root, and which ones would rather see it die on the vine? Here's how they stack up. by max fawcett T The industries that stand to gain—and lose— if Northern Gateway gets built At almost a metre in diameter, a pipeline that would travel approximately 1,177 kilometres would use a lot of steel. But Northern Gate- way's benefits to Canada's steel industry go well beyond that, according to Canadian Steel Pro- ducers Association president Ron Watkins. "In essence, it enables further development of oil and gas resources, and when you then begin to open up further develop- ment you also get into other types and forms of steel demand." That means everything from the steel that goes into the smaller pipelines that link oilsands projects to nearby holding tanks and outtake facilities to the steel that goes into building those tanks and facilities them- selves. The value chain stretches all the way back to Eastern Canada, too, where iron ore is mined in Quebec and Labrador before being forged into primary steel forms in Ontario. "There's a range of benefits floating backwards geographically," Watkins says. Winner StEEl FAbricAtorS and ManUfactURERS Enbridge has committed to making the pipe from steel 20 per cent thicker than required, resulting in the need for 500,000 tonnes of steel, valued at about $700 million CANADA'S PIPELINE DIALoguE