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Source verified August 11, 2026
Oil and Gas Processing Investment Incentive
Transferable tax credits for processing investments
Funding available
$ 75,000,000
Deadline
March 31, 2029
Opened July 8, 2019
Location
Saskatchewan, Canada
Overview
Oil and Gas Processing Investment Incentive (OGPII) provides transferable crown royalty and freehold production tax credits at 15 per cent of approved eligible costs for qualifying companies in Saskatchewan. It supports refineries, petrochemical facilities, and associated gas commercialization projects, with directly linked enabling infrastructure also considered.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase production or service capacity
- Optimize production processes
- Reduce environmental footprint
Eligible Funding
- Maximum amount : 75,000,000 $
- Up to 15.000001% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Saskatchewan
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- New (greenfield) facilities and expansions (brownfield) of existing facilities.
- Refineries and upgrading facilities.
- Petrochemical facilities.
- Associated gas commercialization projects and associated gas pipeline gathering systems.
- Carbon capture, utilization and storage for enhanced oil recovery projects; commercialization of oil and gas production byproducts or waste products projects; chemical fertilizer facilities.
Documents Needed
- OGPII Application Form
- Copy of the company’s Certificate of Incorporation
- Eligible Cost Submission Form with a Detailed Cost Breakdown
- Assurance Report on Cost Breakdown from a third-party licensed Chartered Professional Accountant
- Land Appraisal or Engineer Report, if requested by the Ministry
Official resources
Program guide
Application form
Eligibility
Who is eligible?
- Qualifying companies.
Who is not eligible
- A government, ministry, board, commission, or any other agent or subsidiary of the Crown or of the Crown in right of Canada.
- A not-for-profit corporation.
Eligible expenses
- Eligible costs described in the agreement and incurred on or after January 1, 2018.
- Enabling infrastructure directly connected to the project or required to bring it into operation, including dedicated transportation systems, utility connections, and storage infrastructure.
- Land, if claimed as an eligible cost and supported by an appraisal.
Ineligible Costs and Activities
- Facilities or components that process agricultural products into higher-value products, including hydrogenation-derived renewable diesel and biofuel facilities.
- Secondary and tertiary processing activities created from the original hydrocarbon feedstock.
- Non-emergency flaring and incinerators or combustors in associated gas commercialization project operations.
- Capital asset turnover or routine maintenance.
Eligible geographic areas
- Saskatchewan
- Lloydminster/Kindersley – 1, Swift Current – 2, and Estevan – 3 for aggregated multi-site associated gas commercialization projects
Selection criteria
- Project impact on processing capacity
- Eligibility of the proposed project type
- Compliance with program rules and agreement terms
- Eligibility of claimed costs
How to apply
- Download the OGPII Application Form from the OGPII website.
- Complete the form and email it, with any supporting documents, to ogpii@gov.sk.ca.
Processing and Agreement
- The Ministry reviews the completed application and confirms receipt or notifies the applicant if the form is incomplete.
- The Ministry assesses the proposed project against the eligibility requirements and issues a Letter of Conditional Approval if the project qualifies.
- After conditional approval and once construction is imminent, the applicant and the Ministry enter into a formal agreement.
- The agreement sets the project description, eligible costs, construction and completion dates, evidence submission schedule, indemnification, reporting, confidentiality, and other matters the Minister considers appropriate.
- After the project is commercially operational, the applicant submits an Eligible Cost Submission Form through IRIS with supporting documentation for final review; if approved, a Certificate of Approval is issued and the earned credits are applied.
Additional information
- Applications are accepted until March 31, 2029.
- The program can be used alongside other incentive and grant programs in Saskatchewan.
- Projects may involve more than one company.
- Credits are transferable through IRIS to other eligible corporate entities.
Contacts
Frequently Asked Questions about the Oil and Gas Processing Investment Incentive Program
What is the Oil and Gas Processing Investment Incentive?
Oil and Gas Processing Investment Incentive (OGPII) provides transferable crown royalty and freehold production tax credits at 15 per cent of approved eligible costs for qualifying companies in Saskatchewan. It supports refineries, petrochemical facilities, and associated gas commercialization projects, with directly linked enabling infrastructure also considered.
How much funding can be received?
Oil and Gas Processing Investment Incentive Funds up to 15.000001% of admissible expenses, capped at $75,000,000 per project.
What is the deadline to apply?
The application deadline for this grant program is March 31, 2029. Applicants must submit their complete application before this date to be considered for funding.
Who is eligible for the Oil and Gas Processing Investment Incentive program?
To be eligible for the Oil and Gas Processing Investment Incentive program, you must:
The project must be a value-added oil, gas, associated gas, or chemical fertilizer project.
The project must result in a significant increase in processing capacity.
The project must involve at least CAD$10 million in eligible costs and not be operational before application.
What expenses are eligible under Oil and Gas Processing Investment Incentive?
New (greenfield) facilities and expansions (brownfield) of existing facilities.
Refineries and upgrading facilities.
Petrochemical facilities.
Associated gas commercialization projects and associated gas pipeline gathering systems.
Carbon capture, utilization and storage for enhanced oil recovery projects; commercialization of oil and gas production byproducts or waste products projects; chemical fertilizer facilities.
Who can I contact for more information about the Oil and Gas Processing Investment Incentive?
You can contact Government of Saskatchewan by email at ogpii@gov.sk.ca or by phone at (306) 787-2604.
Where is the Oil and Gas Processing Investment Incentive available?
The Oil and Gas Processing Investment Incentive program is available the province of Saskatchewan.