The first Saskatchewan Oil Infrastructure Investment Program project has been completed, with a new pipeline in the Spruce Lake area.
Husky Midstream’s Saskatchewan Gathering System Expansion pipeline has been completed. The government pledges the $82 million line will support oil production growth while allowing for further access to export markets.
With it online, it will accommodate a new shipping capacity of up to 48,000 barrels per day of crude oil for Saskatchewan, with 62 kilometres of new pipeline and 12 kilometres of replacement pipe. The Government also notes that at its peak of construction, 450 jobs were created.
Premier Scott Moe this project will also sustain long term growth for the energy industry, as the Government wants to increase oil production by 25 per cent to 600,000 barrels per day by 2030.
Husky Midstream’s project is also expected to alleviate record level demand for rail and truck transportation for oil and, at the same time, reduce emissions and transportation costs for the energy sector.
Husky and the Government also add that it could potentially generate increased royalties and revenues for the province.
The OIIP program is still accepting projects, and if eligible, they would receive transferable oil and gas royalty or freehold production tax credits, at a rate of 20 per cent of eligible costs. The government is taking applications until March 31, 2025.