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Oil and Gas Processing Incentive benefits Moose Jaw

MLA Warren Michelson's column for the week of Aug. 14, 2019
Moose Jaw North MLA Warren Michelson

On Thursday, Aug. 1, Premier Scott Moe visited Moose Jaw to introduce the Oil and Gas Processing Investment Incentive (OGPII) and announced that Gibson Energy was its first successful applicant. 

Saskatchewan has a thriving industrial sector which helps boost our economy. Our resources and the revenue they provide support important services for the people of our province such as, health care, education, social supports and infrastructure. 

Our government has helped industry and businesses by maintaining one of the strongest investment climates in the country, and as a result, Saskatchewan has one of the strongest national job and wage growth records over the last decade. Flourishing businesses help our municipalities, towns, and cities thrive.

The Targeted Mineral Exploration Incentive was announced in September 2018 and is leading to increased drilling activity for base metals, precious metals, and diamonds. Now the OGPII will enhance Saskatchewan’s competitiveness in oil and gas development by increasing value-added processing and infrastructure capacity.
The OGPII offers transferable royalty/freehold production tax credits for qualified value-added projects at rate of 15 per cent of eligible project costs, for either new facilities, or expansion of existing facilities. The incentive will support oil and gas producers and value-added companies to grow and generate more value from their operations in the province. The OGPII can also be used to support improved greenhouse gas (GHG) emissions management projects in the sector. 
Gibson Energy is a leading oil-focused infrastructure company headquartered in Calgary with three facilities in Western Canada, nearly 12 million barrels of storage, and over 500 km of crude pipelines. The Moose Jaw facility runs a heavy crude feedstock, with the resulting light end products composed of tops, heavy and light distillate, while heavy end products include roofing flux and road asphalt.

Gibson’s recent expansion, employed 37 local contractors, one being Right Choice Energy Services Inc, who hired over 40 local individuals to work on the expansion project. The debottlenecking project will increase throughput capacity by approximately 30 per cent — from 17,000 barrels per day to 22,000 barrels per day — with no increase in GHG emissions, ultimately reducing the facility’s emissions per barrel of oil processed by approximately 20 to 25 per cent.

The project makes it possible for the facility to recover and reuse waste heat from products coming out of the refinery, thus reducing the environmental impact. As such, it was an excellent fit for the Oil and Gas Processing Investment Incentive and supports our provinces Methane Action Plan.

I want to congratulate Gibson Energy on the important accomplishment. It is great to see businesses and the industry succeed. In partnership with the city and the Government of Saskatchewan, I am often impressed with the innovation and determination of our business leaders. I enjoy hearing the ideas, visions and suggestions of these talented individuals.

If you have thoughts of how to keep our province growing, we welcome your comments.

The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.