The province is extending its Oil Infrastructure Investment Program (OIIP) in hopes of expanding market access for Saskatchewan oil and supporting the development of carbon dioxide (CO2) pipelines. Those pipelines can play a role in reducing emissions and growing enhanced oil recovery capacity, according to the province.
Since OIIP was introduced in 2020, 74,000 barrels per day of new oil pipeline capacity have been added through the program. To date, over $100 million in private capital investment has been secured through OIIP, with a further $380 million associated with projects that have been conditionally approved.
"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. "Extending OIIP shows we are committed to maintaining a competitive resource development environment in Saskatchewan. The growth of our oil and gas sector is a significant priority for our government because it leads to good jobs and additional economic opportunities for the people of our province."
The extension will allow new applications for the program up until March 31, 2029. The program is still offering a 20 per cent royalty tax credit, up to a maximum of $40 million, on qualifying oil or CO2 pipeline projects.
"The extension of the Oil Infrastructure Investment Program will help the province remain a competitive destination for investment, especially as companies navigate these economically challenging times," said Husky Midstream Chief Executive Officer Shane Cooke. "As a company, we benefitted from our participation in the program when expanding our Saskatchewan operations and believe its continuation will encourage future investment in transportation infrastructure that supports new production opportunities and industry growth."
You can find more information about the program and how to apply on the Saskatchewan government's website.