Premier Scott Moe was in Moose Jaw on Aug. 1 to congratulate local company Gibson Energy on being the first successful applicant for the Oil and Gas Processing Investment Incentive from the provincial government.
Gibson Energy, which has operated a crude oil processing facility for 17 years in the city, recently completed an expansion project that will increase its production by 30 per cent — to 22,000 barrels per day from 17,000 barrels a day — with no increase in greenhouse gas emissions.
The incentive offers a 15-per-cent royalty credit on eligible costs of a project that involves related greenfield or brownfield value addition, and Gibson Energy’s project will see that applied to the $20 million put into the project for a return of $3 million.
L-R: Michael Lindsey, senior vice president operations and engineering at Gibson Energy; Bronwyn Eyre, Minister of Energy and Resources; Trevor Hagerman, Right Choice Energy Services; Mayor Fraser Tolmie; Sean Wilson, chief administrative officer at Gibson Energy; Premier Scott Moe.“The energy industry, in general, has had a rough ride in the last few years and we've been very much working with the industry, looking with an eye to how can we can incentivize not only investment in the industry, but investment into what we feel is one of the most sustainable energy, oil-producing industries in the world,” said Moe.
The expansion was completed on June 29, with no workplace accidents in the more than 40,000 work hours that took place. No additional full-time positions will be added as a result of the project, but it will provide more job security for the current employees of the plant.
Sean Wilson, chief administrative officer of Gibson Energy, noted that the possibility of an incentive like this one plays a serious role in the decision to invest in an expansion such as this one.
“We want to continue to expand and optimize our facilities,” said Wilson. “So when you have incentives like this available and the partnerships available with the province, it makes that go or no-go decision that much easier.”
The Oil and Gas Processing Investment Incentive is one of the strategies the Saskatchewan government is using to address the issue of climate change. The purpose is to create competitiveness in the industry, to encourage more green practices.
“This is a really positive day, not only for Gibson Energy and the people that are employed at this plant, but a real positive day for, on full display, how innovation and investment can really allow us in this nation. . . to tackle what is a global challenge,” said Moe.
