A new heavy oil project is bringing some good news to Saskatchewan's oil industry.

This morning, Husky Energy announced the opening of the Edam East heavy oil thermal plant, located approximately 100 kilometres east of Lloydminster.

The plant has the capacity to produce 10,000 barrels of oil per day. It's the first of three thermal projects Husky will bring online this year in the province.

New Husky Energy plant in Saskatchewan0:41

"Despite low oil prices, our province's energy sector continues to attract billions of dollars in new investment," said Premier Brad Wall at the opening. "That's another indication our diversified, resilient economy is weathering the economic uncertainty."

The company says the plant will create 30 permanent jobs and generated 250 jobs during construction. All three thermal oil plants will create 90 permanent jobs and 500 construction jobs.

Premier Wall also weighed in on the Energy East controversy. This morning, the Quebec government said it will seek an injunction against TransCanada to ensure that its proposed Energy East pipeline complies with the province's environmental laws.

Quebec's environment minister said the request for an injunction should not be seen as an 'east versus west' issue. Instead, the province wanted to make sure the pipeline complied with its environmental regulations.

"How will then the West view this decision by the government of Quebec other than through that lens? If there's a prima facie case for Energy East, why slap an injunction against it? Except if it's about environmental politics," Wall said.

"And I think it is going to be divisive. I don't think they're trying to be. But it probably is going to be a bit divisive, unfortunately."

Husky Energy also operates an ethanol plant and heavy oil upgrader in nearby Lloydminster. According to the company, Husky Energy employs approximately 1,000 people in the province.

Corrections

  • A previous version of this story quoted Premier Brad Wall as saying, 'How is this not east versus west? Provinces should not have the authority to veto this pipeline. Ask questions? Yes' when in fact he did not make that direct statement.
    Mar 01, 2016 7:07 PM CT