Minister Wilkinson marks progress in reducing methane emissions in Saskatchewan

Today, the Honourable Jonathan Wilkinson, Canada’s Minister of Natural Resources, announced that the Emissions Reduction Fund (ERF) Onshore Program is providing $20 million dollar to Steel Reef Infrastructure Corporation to partner with energy companies in Saskatchewan to significantly reduce methane emissions.

Steel Reef Infrastructure Corporation will use the federal funding to build key infrastructure to capture, gather and process methane that would otherwise be vented or flared into the atmosphere from upstream oil and gas production in Saskatchewan. Crescent Point Energy, Surge Energy and Whitecap Resources are examples of successful companies that are eliminating venting and flaring in their upstream production in the province under the program.

In a speech to the Saskatchewan Chamber of Commerce, Minister Wilkinson highlighted today’s announcement as an example of how the ERF Onshore Program is helping companies in the province significantly reduce greenhouse gas emissions.

He noted that, to date, seven Saskatchewan companies are pursuing 36 ERF-funded projects with a total of $52 million in funding from Natural Resources Canada. These projects are collectively expected to result in 2.8 megatonnes of CO₂ equivalent emissions reductions in the first year following project completion, making Saskatchewan the province with the highest expected emissions reductions from the first two intake periods of the ERF Onshore Program.

Quotes

“We are pleased to join with oil and gas partners in Saskatchewan to show our steadfast commitment to decarbonizing the environment through greener and cleaner technologies. This collaboration will help ensure we reach our 2030 climate and methane emission reduction objectives while maintaining jobs stability in the region.”
The Honourable Jonathan Wilkinson
Minister of Natural Resources

“The Emissions Reduction Fund has helped accelerate Crescent Point’s efforts to fully eliminate emissions from 10 field projects across our Saskatchewan operations. As a result, we are expecting to permanently avoid the release of approximately 415,000 tCO₂e of GHG emissions. Funding assistance for these projects has been instrumental in creating additional jobs in Saskatchewan and has helped advance technologies to further enhance our environmental stewardship goals.”
Justin Foraie, Vice President, Engineering and EH&S
Crescent Point Energy Corp.

“Steel Reef is proud to partner with Natural Resources Canada and our customers to invest in essential infrastructure that advances our country’s commitment to achieving net-zero emissions by 2050. With the support of the Emissions Reduction Fund, Steel Reef is deploying infrastructure to help decarbonize Canada’s energy sector. Together, by utilizing Steel Reef’s expertise in flare gas capture, we are preventing emissions from being released into the atmosphere, while creating jobs and heating homes in Saskatchewan.”
Austin Voss
Vice President & Chief Operating Officer, Steel Reef Infrastructure Corporation

“The availability of support from the Emissions Reduction Fund came at a time of reduced activity in our sector. The funds made available directly benefited 19 third-party service companies as well as local landowners, in addition to eliminating an estimated 36,500 tonnes of carbon dioxide equivalent in the first 12 months after completion of our project. The citizens of Saskatchewan are seeing direct benefits from the partnerships formed between industry and government, and we are proud to be a part of it.”
Grant Fagerheim, President and CEO, Whitecap Resources

“In 2021, Surge Energy Inc. (“Surge” or the “Company”) partnered with Natural Resources Canada to access funding from The Emissions Reduction Fund for projects that would significantly reduce the company’s greenhouse gas emissions. Through this partnership, Surge was able to secure $14.5 million in funding to install 60 kilometres of natural gas pipelines and 1,650 HP of natural gas compression in the greater Shaunavon and Estevan areas of Saskatchewan. These projects were strategically focused in areas where the current gas handling infrastructure was lacking, and their completion has allowed Surge to meet and exceed the existing standards under the Saskatchewan regulatory framework that govern venting and flaring limits. Surge solicited and partnered with local service providers on the installation of the projects, creating meaningful employment and ancillary benefits for the local economies. Completion of the projects has allowed Surge to conserve the natural gas produced from its operations while at the same time significantly reducing the company’s scope 1 emissions in the province of Saskatchewan.”
Murray Bye, Chief Operating Officer, Surge Energy Inc.

Quick Facts

• Methane is a potent greenhouse gas and short-lived climate pollutant that has 86 times the warming power of carbon dioxide for 20 years after being released into the atmosphere. Methane accounts for 30 percent of the global rise in temperatures to date and for approximately 13 percent of Canada’s total GHG emissions.
• The ERF Onshore Program is currently accepting applications under its third intake period, which was refocused and launched on January 19, 2022, and will be open until March 31, 2022. Further details, including eligibility requirements and how to apply for funding, are available on the ERF website.
• Environment and Climate Change Canada’s recently released review on federal actions to reduce oil and gas methane emissions acknowledges that recent scientific studies indicate that methane emissions have historically been underestimated in Canada. However, it also recognizes that more work is required to drive further reductions in this sector and identified the ERF as a program that will contribute to this effort.
• Investors and purchasers of energy commodities are increasingly demanding lower-carbon energy products. Because all ERF-funded projects require continuous accurate metering and reporting, the program will be able to verify the elimination of venting and flaring from oil and gas operations — helping companies improve investor confidence and increase competitiveness.