Saskatchewan government is extending a key oil infrastructure program to encourage more pipeline construction and expand access to global markets for provincial crude.The Oil Infrastructure Investment Program (OIIP), first introduced in 2020, will now accept new applications until March 31, 2029. The program offers a 20% royalty tax credit, up to $40 million, for approved oil or carbon dioxide (CO2) pipeline projects.Officials say the move is designed to maintain Saskatchewan’s position as a competitive destination for energy sector spending while also supporting job creation and emissions reductions through enhanced oil recovery.“This program remains essential to our goals of generating spending in new energy projects and increasing our oil export capacity,” Energy and Resources Minister Colleen Young said in a release. “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.”.Since its launch, the OIIP has helped add 74,000 barrels per day of new oil pipeline capacity. So far, over $100 million in private capital has been spent on approved projects, with another $380 million linked to projects that have received conditional approval.The program also supports the development of CO2 pipelines, which are used in enhanced oil recovery and play a role in reducing emissions. By capturing and transporting CO2, these pipelines can help prolong the life of existing oil fields while lowering the sector’s carbon footprint.Industry leaders welcomed the news, saying it signals long-term stability in the Government of Saskatchewan’s energy policy.“The extension of the Oil Infrastructure Investment Program will help the province remain a competitive destination for spending, especially as companies navigate these economically challenging times,” said Shane Cooke, chief executive officer of Husky Midstream. “We benefited from the program when expanding our Saskatchewan operations and believe its continuation will encourage future spending in transportation infrastructure.”The province says it remains committed to resource development that balances economic growth with responsible environmental practices.
