The Government of Saskatchewan has announced support for three new projects that are expected to reduce methane emissions, increase gas processing capacity and create jobs.
Highrock Resources Ltd., along with joint venture partner, Kindersley based Verdera Energy, is conditionally approved for their approximately $1.5 million investment in a new flare-gas-to-power project, which is the first of its kind in Saskatchewan. The project will repurpose a jet engine turbine and turn previously flared gas into power for onsite use. It is expected to be operational in the winter of 2021.

Steel Reef is conditionally approved for a project to expand gas processing facilities, which has already created about 50 local construction jobs. It allows oil and gas producers to capture and sell methane gas that is brought to the surface as a byproduct of oil production.

Ridgeback Resources is conditionally approved for support of construction of a new gas fractionation plant and infrastructure near the community of Innes. The value-added project is currently under construction. Once operational, the facility will process methane gas to remove natural gas liquids and separate the liquids into products such as propane and butane for sale in the province. The facility allows oil producers to move away from flaring and venting at oil wells as a result of the realized liquids premium associated with the natural gas liquids.

Combined, these three projects are expected to reduce provincial methane emissions by up to 251,000 tonnes of carbon dioxide equivalent per year, which is equivalent to emissions from the energy used in over 28,000 homes for a year.

The funding is from the Saskatchewan Petroleum Innovation Incentive and the Oil and Gas Processing Investment Incentive, which provide a percentage of transferable royalty credits once private funding has been dedicated and facilities have been built.