Canada Ties Oil Sands Growth to Carbon Capture Initiative
Canada's oil sands producers and governments are joining forces to tie growth in output to carbon capture and storage (CCS) initiatives. Five leading companies - Canadian Natural Resources, Suncor Energy, Cenovus Energy, Imperial Oil, and ConocoPhillips Canada - have signed a non-binding memorandum of understanding with the federal government and Alberta's provincial authorities.
The deal aims to connect future output increases and export capabilities to the Pathways CCS project. The signatories aim for 6 million tonnes per annum of net emissions reductions by 2035, with shared infrastructure for CO2 transportation and storage expected to be in operation by 2032.
Canada and Alberta are also seeking to establish fiscal and regulatory conditions that would support additional oil sands production. This includes a proposed West Coast Oil Pipeline intended to carry over 1 million barrels per day to global markets.