Canada's Oil Sands Alliance reaches agreement to advance Pathways Carbon Capture and Storage Project

Canada’s federal government, Alberta and the Oil Sands Alliance reached an agreement to advance the Pathways Carbon Capture and Storage Project, clearing a key condition tied to a proposed new West Coast oil pipeline. The project is designed to eventually transport and store about 6 million metric tons of captured CO2 annually by the mid-2030s. The deal supports Canada’s push to expand oil export capacity to Asia while addressing emissions from its highest-polluting sector. The Pathways project, first proposed in 2022, had faced cost concerns and is now being reworked in phases from an initial C$16.5 billion estimate. The development is positive for Canada’s oil sands producers and pipeline-related energy infrastructure, though it also underscores the tradeoff between production growth and environmental commitments.