(WO) — Canada, Alberta and five major oil sands producers are advancing a framework that links future production growth and expanded export capacity with the Pathways carbon capture and storage (CCS) project and broader emissions reductions.
The non-binding memorandum of understanding (MOU), signed July 2, includes Canadian Natural Resources, Suncor Energy, Cenovus Energy, Imperial Oil and ConocoPhillips Canada. The parties are targeting binding definitive agreements by Nov. 15, 2026.
Under the framework, the producers intend to advance the Pathways CCS project, targeting 6 million tonnes per annum (MMtpa) of net emissions reductions by 2035. Shared CO₂ transportation and storage infrastructure is expected to be operating by 2032.
The agreement also establishes a goal of another 10 MMtpa of emissions reductions by 2045. Those reductions could come from expanding CCS or deploying other technologies and production practices, bringing the framework’s overall emissions-reduction target to 16 MMtpa.
At the same time, Canada and Alberta are working to establish fiscal and regulatory conditions supporting additional oil sands production. The framework links that growth with expanded market access, including a proposed West Coast Oil Pipeline designed to transport more than 1 million bpd toward global markets.
Alberta has agreed, subject to applicable approvals, to provide financial support aimed at encouraging production growth, extend its Carbon Capture Incentive Program through 2035 and establish a 120-day approval timeline for qualified projects. Canada plans to pursue measures supporting CCS operating costs and address industry concerns surrounding the federal CCUS investment tax credit.
However, the MOU does not represent final investment decisions on the proposed projects. Commitments remain conditional on definitive agreements between the governments and individual oil sands producers, making the targeted Nov. 15 agreements a key next step for the production-growth and CCS plans.
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