Oilsands Majors, Governments in High-Stakes Talks Over Carbon Capture

Oilsands majors and government officials are in intense negotiations to reach a deal on carbon capture and expanded production ahead of an April 1 deadline.

The talks aim to tie a major carbon capture proposal to increased crude production and a new export pipeline, with the sector's main lobby group saying 'lots of big challenges' remain.

Kendall Dilling, head of the Oil Sands Alliance, said three parties are working hard to reach an agreement: oilsands producers, Alberta, and Ottawa. He noted that while there's still much work to be done, April 1 is a milestone in the process.

The deal could form the linchpin of Premier Danielle Smith's 'grand bargain', which links investment in emissions reductions to expanded oilsands production and access to new markets through a proposed West Coast pipeline.