The provincial government has announced they are expanding the Oil Infrastructure Investment Program to make pipelines that transport carbon dioxide eligible. The program was introduced in the 2020 provincial budget to help attract investment in pipelines in Saskatchewan. 

The OIIP offers transferable oil and gas royalty/freehold production tax credits at a rate of 20 percent of eligible costs for qualified infrastructure projects that increase provincial pipeline capacity. The program is designed so that government investment follows up the investment from the private sector. 

“It’s been a successful program so far,” said Energy and Resources Minister Bronwyn Eyre. “It’s attracted more than $76 million in private investment since it was first introduced.  

It is projected by the province carbon capture utilization and storage projects will attract more than $2 billion in investment into the province.  

Eyre pointed out southeast Saskatchewan will likely benefit from the program. Nearly 50 percent of all carbon captured in the country is stored in southeast Saskatchewan, and Whitecap Resources uses the carbon dioxide for enhanced oil recovery south of Weyburn. 

“This is about making our province the most competitive jurisdiction in the country to invest in CCUS technology and infrastructure,” Eyre added. 

Those looking to apply for the credits under the OIIP can do so until March 31st, 2025, and the credits that are earned expire on March 31st, 2035.