November 11, 2015

Pipeline Projects To Generate Millions In New Tax Revenues

When discussing natural gas pipeline construction projects, two benefits frequently arise: job creation and increased access to natural gas. These results are pretty self-evident. After all, construction workers are needed to build the pipeline and the very purpose of the project is to facilitate consumers’ access to natural gas.

One benefit of natural gas projects doesn’t come up as often but is no less impactful – the generation of tax revenues. A recent piece published by Energy In Depth highlights the windfall of tax revenues that Ohio is expected to receive from pipeline construction projects. As the article describes:

“Ohio is slated to receive over $8 billion with the construction of 1,500 miles of pipeline that are planned in 2016. Energy Transfer announced that the Rover Pipeline project will generate $135 million in property taxes once the 570 mile pipeline goes into service. Therefore, Energy Transfer will pay $236,842/mile in property taxes, once the line goes into service in 2016. Then there’s the Columbia Pipeline Group Leach Xpress pipeline, which will generate $40.6 million in property taxes for both Ohio and West Virginia.”

$256 million a year could go a long way toward benefiting local communities, providing funding for infrastructure upgrades, local libraries, and other community projects all along the pipeline route. After considering these benefits along with job creation and clean, affordable energy access, supporting pipeline projects becomes a pretty easy decision.