Canada's Oil Producers Eye Pathways Carbon Capture Project for Late 2027

Canada's oil producers are targeting late 2027 for a final investment decision on their proposed Pathways carbon capture and storage project, which could reduce greenhouse gas emissions from Canadian oil sands production.

The project is a key piece of Canada's plan to grow oil production while keeping emissions in check. It involves a CO2 transportation pipeline and storage hub, and has been scaled down from an earlier proposal that targeted 22 million tonnes of emissions reduction by 2030.

Kendall Dilling, president of the Oil Sands Alliance industry group, believes oil sands companies will reach definitive agreements with the Alberta and federal governments on fiscal terms by mid-November. This would pave the way for a potential decision to go ahead with the multi-billion-dollar project.

The Pathways project has been linked to a new 1 million barrel-per-day export pipeline to the Pacific Coast, which Prime Minister Mark Carney has endorsed but says is contingent on the project going ahead.