Alberta, Federal Government and Oilsands Producers Sign Pathways Carbon Capture Deal

The Alberta government, the federal government and five major oilsands producers signed a memorandum of understanding on July 2 to advance the Pathways carbon capture and storage project. The agreement was announced Monday, the same day Alberta filed its pipeline proposal to the federal major projects office.

The Pathways project is a condition for a new West Coast oilsands pipeline to move ahead.

The pipeline would run from Alberta to a tanker port in southern British Columbia. The governments have agreed to pursue regulatory and fiscal policies that would spur oilsands production growth. The Pathways-pipeline arrangement was part of a sweeping accord Ottawa and Alberta signed in November.

"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.

"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 federal energy and natural resources minister Tim Hodgson.

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 five energy companies 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.