Moose Jaw firm benefits from new government program

A Moose Jaw energy company is the first business in Saskatchewan to receive support from a new government program.

Gibson Energy Inc., was introduced Thursday as the first successful applicant for the Oil and Gas Processing Investment Incentive (OGPII). According to a media release, the program is “designed to enhance Saskatchewan’s competitiveness in oil and gas development by enabling increased value-added processing and infrastructure capacity.”

Oil and gas producers in the province can access the program to generate increased value from their work in Saskatchewan. The program also is designed to help companies with their greenhouse gas (GHG) emissions management projects.

Gibson Energy’s chief administrative officer, Sean Wilson, said Wednesday’s announcement was an indication of the importance of partnerships between the public and private sectors.

“As a proud member of the Moose Jaw community for nearly 20 years, we would like to recognize the Government of Saskatchewan for offering programs such as the OGPII to help businesses strengthen their ties to the province and to continue to create jobs throughout Saskatchewan,” Wilson said in the release.

Gibson Energy operates a heavy crude oil processing facility in Moose Jaw that produces a variety of refined products. Its recently completed expansion will increase capacity from 17,000 barrels per day to 22,000 barrels per day with no increase in GHG emissions.

“The incentive provides successful applicants with a 15 per cent transferrable royalty credit, applied to eligible costs directly related to an eligible greenfield or brownfield project,” the media release said.

OGPII requires projects to result in a large increase in processing capacity and to have a minimum of $10 million in eligible costs. The program has a royalty credit cap of $75 million per project and a total credit cap of $300 million in royalty credits.