Alberta, Ottawa, and oilsands companies sign Pathways carbon capture agreement to enable pipeline and emissions reduction

The Alberta government, Ottawa, and five major oilsands producers have signed a memorandum of understanding to advance the Pathways carbon capture and storage project. The deal is tied to a new West Coast oilsands pipeline, with the carbon capture infrastructure meant to offset emissions from the increased production the pipeline would enable. The project aims to capture and store about six million tonnes of CO2 per year by the mid-2030s, using a pipeline network to transport captured carbon to an underground storage hub near Cold Lake, Alberta. The agreement includes federal commitments to extend investment tax credits for carbon capture equipment to 2035, while Alberta will finalize its own incentive program. The Pathways consortium includes Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy, and ConocoPhillips. The project is expected to be in service by January 2032 and fully completed by 2035. This deal ties carbon capture infrastructure directly to new pipeline capacity, making it a key test for how Canada balances emissions reduction with fossil fuel production growth.