Canada advances Pathways carbon capture project

Canada

CALGARY, July 14, 2026 – Canada’s federal government, the Alberta government and Oil Sands Alliance have signed an MoU to advance the Pathways Carbon Capture and Storage Project, the Oil Sands Alliance said on Monday.

The project will have the capacity to transport and store at a hub in the Cold Lake area approximately 6 million tonnes per year of carbon dioxide captured at various oil sands facilities by the mid-2030s.

With the agreement, the parties meet a key government condition to unlock federal backing for a new oil pipeline to Canada’s western coast that aims to expand export capacity to Asia, for which Alberta had submitted an application to the Major Projects Office earlier in July.

Prime Minister Mark Carney has said federal support for the pipeline depends on oil sands producers proceeding with a large-scale CCUS project to reduce emissions from the sector.

“We believe we’ve achieved a framework that is positive for the oil sands industry and provides a step forward to help enable production growth and to advance the Pathways Project. Our members will continue to work with both the provincial and federal governments to ensure Canada is a competitive destination for energy investment,” said Kendall Dilling, president of the Oil Sands Alliance.

Oil Sands Alliance comprises five of Canada’s largest oil sands companies, namely Canadian Natural, Cenovus, ConocoPhillips Canada, Imperial Oil and Suncor. The partners first proposed the Pathways project in 2022, and have since agreed with governments to develop the infrastructure in phases.

Photo courtesy of Oil Sands Alliance