WEYBURN, ESTEVAN — On Thursday, Minister of Energy and Resources Colleen Young toured two key southeast facilities that support innovative and sustainable energy production: Whitecap Resources Inc.’s enhanced oil recovery (EOR) project in Weyburn, and Steel Reef Infrastructure Corp.’s (Steel Reef) Viewfield gas processing facility, including their combined heat and power project, in the Estevan area.
“Our oil and gas sector is a bedrock of the provincial economy, supporting jobs, families and a massive service and supply industry,” Young said. “Saskatchewan energy producers have a proven track record of developing and implementing new technologies to reduce emissions and keep production strong into the future. Our province is ready to play a key role in helping Canada realize its potential to be a global energy superpower.”
The Weyburn CO2 EOR project has been operating for nearly 25 years. It collects carbon dioxide (CO2) emissions from industrial emitters and injects the gas underground to enhance oil recovery. To date, the facility has stored more than 44 megatonnes of CO2, which is the equivalent of removing 9,310,647 cars off the road for one year. It has also produced more than 120 million barrels of oil during this time.
“Whitecap is proud to own and operate one of the world’s largest carbon sequestration facilities, right here in Saskatchewan,” Whitecap Resources Inc. senior vice-president of business development and IT Dave Mombourquette said. “This project helped pioneer enhanced oil recovery and world-leading best practices for EOR project implementation. It continues to enable low-decline, stable oil production while also reducing emissions. Saskatchewan’s foresight in capturing CO2 from Boundary Dam continues to pay dividends as the current main source of CO2 that drives Weyburn’s EOR recovery today. The province’s attractive energy policies, combined with its skilled workforce, make Saskatchewan an ideal place for us to continue our investment to realize the full potential of the province’s vast energy resources.”
Steel Reef continues to support associated gas capture from oil production. Instead of associated gas being vented or flared to the atmosphere, the gas is collected and processed into various saleable products and used to generate electricity. The company has used the Government of Saskatchewan’s Oil and Gas Processing Investment Incentive (OGPII) several times to support its flare gas capture investments in the province.
Steel Reef has built the first phase of its combined heat and power project at its Viewfield gas processing facility in the Estevan area, which includes a turbine for power generation and integrated waste heat recovery units, reducing the need for associated gas consumption for utility and process heat for flare gas processing.
With phase 2, Steel Reef will install additional turbines and electrical substations at Viewfield, as well as its facilities in Coleville, North Portal, Saskatchewan Ethane Extraction Plant (SEEP) and Steelman to align with multiple long-term Power Purchase Agreements (PPAs) with SaskPower to provide in excess of 100 megawatts of carbon-efficient power for Saskatchewan communities. On average, each site will produce approximately 20 megawatts of power to be brought onto the SaskPower grid by late 2027.
“We were pleased to tour our Viewfield facility alongside the Government of Saskatchewan to highlight the importance of economic growth and shaping a reliable, responsible and sustainable energy future,” Steel Reef Infrastructure Corp. chief operating officer Austin Voss said. “This was an opportunity to showcase how we are advancing emissions-to-energy technologies, and how we are investing in electricity-generating turbines powered by recovered flare gas. This process reduces emissions and provides electricity from a previously unavailable source. By working with the government and industry peers — and thanks to the dedication of our talented employees — we are strengthening Saskatchewan’s energy sector and delivering long-term opportunities for growth and competitiveness.”
The ministry continues to promote the responsible development of Saskatchewan’s oil and gas resources through various emissions reduction programs. As of 2024, Saskatchewan’s oil and gas sector has reduced emissions from venting and flaring at upstream oil facilities by 71 per cent, compared with 2015 levels.
Saskatchewan is a global leader in low-emissions oil production from EOR. The Government of Saskatchewan urges the Government of Canada to support sustainable oil production, including by making EOR an eligible use of captured CO2 under the federal Carbon Capture, Utilization and Storage Investment Tax Credit. Saskatchewan’s competitive royalty structure, stable and predictable regulatory approach, programs that support innovation, emissions reductions and new infrastructure make the province one of the best places in the world to invest in oil and gas.
For more information about the Ministry of Energy and Resources' incentives and Crown royalty programs, please visit this link. You will find specific information about the Oil and Gas Processing Investment Incentive, the Saskatchewan Petroleum Innovation Incentive and the Oil Infrastructure Investment Program.
