KINDERSLEY, SASK. — Two projects announced for Saskatchewan are expected to reduce venting and flaring of methane gas.
The North Portal oil and gas processing projects, which are being planned by Steel Reef, have been approved under the provincial Oil and Gas Processing Investment Incentive (OGPII). Introduced in 2019 as part of the Government’s Methane Action Plan, OGPII is available for companies making investments in infrastructure and value-added processing projects, including ones that reduce venting and flaring of methane gas.
“These methane capture and commercialization projects will create local jobs and help grow our economy,” Bronwyn Eyre, minister of energy and resources said in a statement. “They build on our energy strengths and are another positive win-win for the economy and the environment.”
The capital investment for the projects is expected to reach $40 million. Earlier this year, the North Portal Gas Plant completed an expansion of its procession facility. The project included reactivating gathering infrastructure to tie in previously flared gas through its existing integrated pipeline infrastructure.
Steel Reef is also investing in a new fractionator adjacent to the North Portal Gas Plant, which will allow it to process natural gas liquids from its North Portal Gas Plant and other gas plants in the area into separated propane, butane and condensate for direct access to local and export markets.
“This partnership with the Government of Saskatchewan is a key part of ensuring more associated gas is being captured, processed and brought to markets,” Steel Reef’s chief operating officer Austin Voss said. “We are proud to deliver on our core purpose of enhancing the energy community by investing in infrastructure that prevents flaring and creates value for the province.”