Canada's Oil Producers Target 2027 Decision for Massive Carbon Capture Project

Canada's largest oil producers are planning to make a final investment decision on the Pathways carbon capture and storage project in late 2027 or early 2028. The project, which involves building a pipeline to transport CO2 and a storage facility, is part of Canada's plan to increase oil production while reducing greenhouse gas emissions.

The project's original proposal aimed to cut emissions by 22 million tonnes by 2030, but the new concept has more modest goals: reducing emissions by 6 million tonnes by the mid-2030s and cutting a further 10 million tonnes by 2045. Kendall Dilling, head of the Oil Sands Alliance, described the revised parameters as more balanced and realistic given the complexity of construction and the need to control costs.

The Pathways project is also included in agreements between the Canadian government and Alberta's authorities on the development of the oil industry. The companies involved, including Canadian Natural Resources, Imperial Oil, Suncor Energy, Cenovus Energy, and ConocoPhillips Canada, expect to complete negotiations with the governments on financial terms by mid-November.