Canada's Oil Producers Eye Late 2027 for Carbon Capture Decision

Canada's biggest oil producers are planning to make a final investment decision on their proposed carbon capture and storage project, Pathways, by late 2027. The project aims to reduce greenhouse gas emissions from Canadian oil sands production.

Kendall Dilling, president of the Oil Sands Alliance industry group, told Reuters that he believes definitive agreements with the Alberta and federal governments on fiscal terms will be reached by mid-November.

The Pathways project is a key piece of Canada's plan to grow oil production while keeping emissions in check. It includes a proposed CO2 transportation pipeline and storage hub.

Environmentalists have criticized the Oil Sands Alliance for scaling down the project, which had earlier targeted 22 million tonnes of emissions reduction by 2030. However, Dilling said that the new target of 6 million tonnes by the mid-2030s is a more balanced middle ground.