The Government of Saskatchewan is extending the Oil Infrastructure Investment Program (OIIP) to encourage the construction of new oil and carbon dioxide (CO₂) pipelines, aiming to expand market access and enhance emissions reduction efforts in the province’s energy sector.
Originally launched in 2020, the OIIP offers a 20 per cent royalty tax credit — up to $40 million per qualifying project — to support the development of strategic oil and CO₂ pipeline infrastructure. The program, which was set to expire, will now continue accepting applications until March 31, 2029.
“This program remains essential to our goals of generating investment in new energy projects and increasing our oil export capacity,” said Energy and Resources Minister Colleen Young in a news release. “Extending OIIP shows we are committed to maintaining a competitive resource development environment in Saskatchewan.”
To date, the program has supported the development of an additional 74,000 barrels per day of oil pipeline capacity and attracted more than $100 million in private capital investment. An additional $380 million is tied to conditionally approved projects under OIIP.
Carbon dioxide pipelines, which are eligible under the program, are seen as critical tools in enhanced oil recovery and emission reduction strategies.
Industry leaders welcomed the announcement.
“The extension of the Oil Infrastructure Investment Program will help the province remain a competitive destination for investment,” said Husky Midstream CEO Shane Cooke. “We benefitted from our participation in the program when expanding our Saskatchewan operations and believe its continuation will encourage future investment in transportation infrastructure.”
More information about the program, including application details, is available at saskatchewan.ca/oil-infrastructure-investment-program.