Pathways CCS, West Coast Oil Pipeline Gain Government Backing

Canada, Alberta and the Oil Sands Alliance signed an agreement linking progress on the Pathways CCS project with oil sands growth and a proposed West Coast oil pipeline.

(P&GJ) — Canada, Alberta and the Oil Sands Alliance have signed a memorandum of understanding aimed at advancing the proposed Pathways carbon capture and storage project while supporting oil sands growth and a new West Coast oil pipeline.

The agreement outlines potential regulatory and fiscal changes intended to improve project development, increase production and expand access to export markets. Alberta recently submitted the proposed West Coast Oil Pipeline to the federal Major Projects Office.

The MOU also establishes a framework for moving the Pathways CCS project forward, subject to final agreements and regulatory approvals. The project is designed to transport and permanently store about 6 MMtpy of captured carbon dioxide from multiple oil sands facilities at a storage hub near Cold Lake by the mid-2030s.

Oil Sands Alliance President Kendall Dilling said the agreement creates a clearer framework for both production growth and carbon infrastructure development.

“We believe we’ve achieved a framework that is positive for the oil sands industry and provides a step forward to help enable production growth and advance the Pathways Project,” Dilling said.

He added that alliance members will continue working with federal and provincial officials on the detailed agreements needed to move the projects ahead.

The MOU is not a final project approval. Development of the Pathways CCS system and the proposed pipeline will still depend on commercial agreements, regulatory reviews and financing.