Husky’s Midstream’s Saskatchewan Gathering System Expansion first project completed under OIIP

The province announced the first completed in-service pipeline project under the Oil Infrastructure Investment Program on Wednesday.

“The Oil Infrastructure Investment Program (OIIP) offers transferable royalty/freehold production tax credits for qualified projects at a rate of 20 per cent of eligible program costs.”

Husky Energy’s Midstream’s Saskatchewan Gathering System Expansion project will accommodate a new shipping capacity of up to 48,000 barrels per day of crude oil production, with 62 kilometers of new pipeline and 12 kilometers of replacement pipe.

The investment near Spruce Lake, is around $82-million, and will support oil production growth and broader access to export markets.

It is also responsible for the creation of about 450 construction jobs.

“Our government will continue supporting the development of oil infrastructure in our province to create long-term sustainable growth for our energy industry,” Premier Scott Moe said in a release. “This project is a step towards meeting our Growth Plan targets to increase oil production by 25 per cent to 600,000 barrels per day by 2030.”

“We want to foster greater energy independence in Saskatchewan, particularly in light of the federal government’s anti-energy policies and cancellation of major pipeline projects in recent years,” Energy and Resources Minister Bronwyn Eyre said, also in a release. “This pipeline expansion will increase Saskatchewan’s producers’ access to processing and export infrastructure, support growth, and decrease trucking volumes on our highways.”

“The Oil Infrastructure Investment Program helps attract investment to the province, especially in times where economic uncertainty means companies are re-evaluating their capital spending,” CEO of Husky Midstream Duane Rae said in a news release. “It will help companies like ours invest in new transportation infrastructure that supports customers developing new production opportunities.”

Husky Midstream’s project, as well as other anticipated new and expanded pipeline infrastructure, will help 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, according to the province.

Applications for the OIIP program will be accepted until the end of March in 2025.

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