Pathways Plus

Description

The Pathways Plus transformative strategy combines a series of emissions reductions projects by the Oil Sands Alliance, is a combination of oil production growth support, as well as the proposed West Coast Oil Pipeline (WCOP).

As outlined in the Memorandum of Understanding (MOU) between Canada, Alberta and the Oil Sands Alliance Participants, the strategy sets out the following objectives:

• Expand market access: Supporting the expansion and diversification of global market access for competitive and secure Canadian oil.
• Production growth: Supporting the development of fiscal and regulatory frameworks to enable sustained and sustainable oil sands development and production growth.
• Emissions reduction: Advancing effective and efficient emissions reduction projects, including carbon market frameworks and incentives that support meaningful greenhouse gas reductions and contribute to emissions intensity reductions for heavy oil produced in Canada.
• Indigenous Peoples: Respecting consistent and early engagement, as well as meaningful consultation with Indigenous Peoples, while advancing Indigenous economic opportunities relating to WCOP.

The Oil Sands Alliance represents five of Canada’s largest oil sands companies: Canadian Natural Resources Limited, Cenovus Energy, ConocoPhilips Canada, Imperial Oil and Suncor Energy.

The Emissions Reduction Projects

One part of the Pathways Plus transformative strategy is the Pathways Project, one of the world’s largest post-combustion carbon capture and storage projects, which will capture and store six million tonnes (net) of emissions per year by 2035. The Pathways Project will reduce the emissions intensity of heavy oil produced in Canada, support production of lower-carbon oil, expand Canada’s ability to deliver energy to global markets, and strengthen economic independence.

The MOU sets out the Participants’ approach to reducing greenhouse gas emissions from oil sands operations by 16 million tonnes per annum (“MTPA”) between now and 2045, to support reductions in the emissions intensity of Alberta heavy oil.

The Pathways Project: 6 Mtpa (net) of Carbon Capture and Storage projects by January 1, 2035.

Additional emissions reductions: 10 Mtpa (net) of Additional Emissions Reductions to be achieved through the expansion of the Pathways Project, deployment of other emissions reduction technologies, or projects deploying improved production practices focused on lowering emissions. This includes:

• 5 Mtpa (net) of Additional Emissions Reduction projects by January 1, 2040; and
• 5 Mtpa (net) of Additional Emissions Reduction projects by January 1, 2045.

For additional details, please refer to the MOU.

Production growth

Recognizing their mutual interest in production growth, emissions reductions and the WCOP, the Participants have a shared understanding for cooperation relating to responsibly growing oil sands output while reducing CO2e emissions intensity; enabling secure and diverse global market access; and driving investment and economic multiplier benefits.

As part of the MOU, Canada and Alberta agreed to provide the conditions necessary for Oil Sands Alliance member companies to simultaneously grow production and reduce emissions over time. For example, the Government of Canada will, subject to applicable legislative and regulatory approval processes, advance proposals with a view to providing greater policy certainty regarding the following:

• Offer financing or support mechanisms that provide for operating cost support for carbon capture and storage projects, through various mechanisms including but not limited to enhanced Clean Fuel Regulation (CFR) durability to ensure that environmental and economic outcomes are achieved and sustained;
• Review and address technical clarifications and other concerns raised by the industry related to the CCUS ITC; and
• Establish a bilateral regulatory-focused working group with the Oil Sands Alliance Parties to guide work relating to reviewing the efficiency and effectiveness of existing statutes and regulations relating to the development of oil sands resources and to advance solutions.

The Government of Alberta has agreed to, amongst other things, implement financial supports to encourage the oil production growth required to underpin the WCOP, the expansion of Trans Mountain, and other egress growth.

West Coast Oil Pipeline

The proposed West Coast Oil Pipeline was referred to the Major Projects Office on July 2, 2026. The pipeline will transport more than one million barrels of oil per day to Canada’s west coast and strengthen access towards global markets.