The Saskatchewan government announced the formation of a new cabinet committee on Tuesday to evaluate new pipelines in the province. The committee’s focused on the review of the viability of projects and possible government involvement in “investing, stimulating, or generally advancing these projects.”
The formation of the Pipeline Projects Assessment Committee (PPAC) comes from “a number of proposals from business, Indigenous groups, and communities” who are looking at pipeline projects to expand market access.
According to the government press release, potential projects include southbound pipe to better access American markets and projects to create access through Manitoba’s Port of Churchill.
“Our government recognizes the necessity of further developing pipeline infrastructure to help our energy products reach key global markets,” said Premier Scott Moe in a press release.
“I am pleased to announce this cabinet committee to assess the viability of pipeline project proposals in Saskatchewan and the opportunity for our government to invest or support future pipeline projects.”
Expanding pipeline infrastructure is identified as a goal in the province’s 2030 growth plan. In addition to proactively supporting development, the growth plan says the government wants to ensure Indigenous equity participation in energy projects.
On the possibility of the Saskatchewan government investing directly in pipeline projects, Trade and Export Minister Jeremy Harrison said political uncertainty can scare away private sector dollars.
“It’s not ideal that you would have to have governments directly involved in this fashion in energy infrastructure projects, but the reality is that unless governments are involved in energy infrastructure projects, they’re not going to get built,” Harrison said.
The minister added it’s in the province’s economic interest to ensure that pipelines are built, so they have to go beyond advocacy.
Across the aisle, finance critic Trent Wotherspoon said this cabinet approach should have been taken some time ago. As for public investment in pipelines, Wotherspoon said it would be best to handle those decisions on a case-by-case basis.
“I think you have to look at this on a project-by-project basis, and we’d be open-minded to what the options would look like, but you shouldn’t be racing to place public dollars on that front,” Wotherspoon said.
During his address at the Saskatchewan Urban Municipalities Association (SUMA) conference on Monday, Moe signalled this announcement, telling attendees to expect an announcement that would ensure the province would do everything it can to get pipelines going.
The four-member PPAC includes Finance Minister Donna Harpauer, Environment Minister Dustin Duncan, Energy and Resource Minister Bronwyn Eyre, plus Harrison.