Oil and Gas Processing Investment Incentive (OGPII)
$75,000,000
Tax Credit
Description:
The Oil and Gas Processing Investment Incentive (OGPII) offers transferable crown royalty and freehold production tax credits for qualified greenfield or brownfield value-added projects at a rate of 15 per cent of eligible program costs.
OGPII is open to value-added projects across all segments of Saskatchewan’s oil and gas sector as well as chemical fertilizer facilities. Eligible projects include:
• Refineries/upgrading facilities (i.e., partial upgraders, asphalt production, and sulphur removal units);
• Petrochemical facilities (i.e., methanol, ammonia, polypropylene, olefins, and ethylene);
• Associated gas commercialization projects (i.e., processing facilities, waste-gas-to-power etc.);
• Regional gas gathering projects and projects with multiple phases may also be considered under a single project application;
• Carbon capture, utilization and storage for enhanced oil recovery;
• Commercialization of oil and gas production byproducts and waste products; and,
• Chemical fertilizer facilities;
OGPII is administered by the Ministry of Energy and Resources.
Comments on Funding:
OGPII has a project-specific awarded credit cap of CAD$75 million (i.e., a CAD$500 million project) for oil, gas, helium and lithium projects, and CAD$70 million for chemical fertilizer projects.
March 31, 2029
Eligibility:
Applicants must:
1. be companies;
2. have greenfield or brownfield value-added projects across all segments of Saskatchewan’s oil, gas, helium, and lithium sectors as well as chemical fertilizer facilities;
3. have eligible activities that add or create value:
a) by processing, transforming, and/or upgrading upstream oil, gas, helium and lithium industry products,
b) by commercializing upstream oil and gas production byproducts and waste products, or
c) by increasing value-added chemical fertilizer production.
4. have projects including new (greenfield) facilities or expansions (brownfield) of existing facilities, as well as all enabling infrastructure that is required to bring the project into operation;
5. have projects resulting to a significant increase processing capacity in Saskatchewan’s oil, gas, helium, lithium or chemical fertilizer industry;
6. have projects that involve a minimum investment of CAD$10 million in eligible costs.
Application Steps:
Applicants must:
1. Complete and submit the OGPII Application Form.
2. If they have questions about the application process, refer to the OGPII Program Overview and Application Instructions or contact ogpii@gov.sk.ca
Documentation Needed:
Applicants must submit:
1. a completed OGPII Application Form;
2. additional information, as requested.
Other Things to Note:
Program Update: A five-year extension to OGPII will be announced as part of Budget 2024-25. Project applications will be accepted until March 31, 2029.
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Maurice
