Alberta, Ottawa and oilsands companies reach Pathways agreement

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“The biggest nation-building projects in Canada’s history have succeeded through partnership. This agreement shows what can be achieved when governments and industry work together to grow our economy, strengthen our energy security and unlock new opportunities for people across Canada,” Alberta Premier Danielle Smith said in a news release.

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The Pathways-pipeline quid pro quo was part of a sweeping accord Ottawa and Alberta signed in November on a wide array of energy matters.

“Over the last eight months, we have been steadily delivering on each commitment in the Canada-Alberta MOU, working with Alberta and the energy industry to build major energy infrastructure, reduce emissions, create jobs and prosperity, and secure energy sovereignty,” said Tim Hodgson, the federal energy and natural resources minister.

The federal government has committed to extending investment tax credits for various carbon capture equipment to 2035. Alberta says it will finalize its own incentive program for carbon capture.

The memorandum of understanding says the Pathways Project would proceed in stages, with infrastructure in service by Jan. 1, 2032, and the project completed three years later.

The members of the consortium behind the Pathways alliance are Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy and ConocoPhillips.

“We believe we’ve achieved a framework that is positive for the oilsands industry and provides a step forward to help enable production growth and to advance the Pathways Project,” said Kendall Dilling, president of the Oil Sands Alliance.

The alliance said that the Pathways Project will have the capacity to transport and store about six million tonnes per year of captured carbon dioxide by the mid-2030s.

The project involves a pipeline network that would carry CO2 captured from various oilsands site in northern Alberta to an underground storage hub near Cold Lake, Alta.

This story was first published by The Canadian Press on July 13, 2026.

Companies in this story: (TSX:CVE) (TSX:IMO) (TSX:SU) (TSX:CNQ)

Lauren Krugel, The Canadian Press