Oil Upgrader Investment
Res #: 1-22A
Responses Received: Yes
Departments: Saskatchewan Ministry of Energy and Resources
WHEREAS the provincial government wants to enhance job creation and a strong economy;
WHEREAS there are huge engines burning fossil fuel for agriculture, transportation and industry, within
our province; and
WHEREAS we have untapped oil here in this province.
BE IT RESOLVED that the provincial government invest in another oil upgrader.
Responses From: Saskatchewan Ministry of Energy and Resources
May 31, 2022
The Government of Saskatchewan is committed to supporting the development of the province’s untapped resources. Saskatchewan’s Growth Plan includes support for value-added processing in all key sectors throughout the province, including oil upgrading and refining. In 2019 Saskatchewan launched the Oil and Gas Processing Investment Incentive (OGPII), which provides a 15 per cent rebate on capital expenditures for new and expanded oil upgraders and refineries. This program has seen positive uptake and continues to receive applications across multiple industries. Notably, Gibson Energy utilized the OGPII program in 2019 to expand their heavy oil processing capacity at their Moose Jaw Facility by approximately 30 per cent.
The Government of Saskatchewan’s growth tax incentive programs are a proven and effective way to boost private sector investment, which in turn, supports the investment fundamentals of Saskatchewan’s key commodity sectors. Despite the support of the above noted programs, industry has not yet identified that a new, large-scale upgrader would be an economic project within Saskatchewan.
Deputy Minister Susanna Laaksonen-Craig – Ministry of Energy and Resources