Canada's Pathways CCS Deal Signed by Federal, Alberta, Oil Sands Firms

The Alberta government, the federal government of Canada and five major oil‑sands producers – Canadian Natural Resources, Imperial Oil, Suncor, Cenovus Energy and ConocoPhillips – signed a memorandum of understanding on July 2, 2026 to move forward with the multibillion‑dollar Pathways carbon capture and storage (CCS) project. The agreement makes the Pathways project a condition for the proposed West Coast oilsands pipeline that would carry crude to a tanker port in British Columbia.

Pathways aims to transport and permanently store about six million tonnes of captured CO₂ per year by the mid‑2030s, using a pipeline network that will move CO₂ from northern Alberta oil‑sands sites to an underground storage hub near Cold Lake. The project is slated to have initial infrastructure in service by 1 January 2032 and to be completed by 2035. The federal government will extend investment tax credits for carbon‑capture equipment to 2035, while Alberta will finalize its own incentive program.

Premier Danielle Smith said the deal shows what can be achieved when governments and industry work together, and federal energy minister Tim Hodgson highlighted the commitment to building major energy infrastructure, reducing emissions and securing energy sovereignty.