The governments of Alberta and Canada have joined forces with the country’s five largest oilsands producers in a landmark agreement aimed at doubling provincial oil production while advancing the world’s largest carbon capture and storage initiative.
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Under a newly signed memorandum of understanding (MOU), Alberta’s government, the federal government and the Oil Sands Alliance established a policy and fiscal framework to scale up production and build the massive Pathways Carbon Capture and Storage (CCS) Project.
The agreement, announced on July 13, is designed to help producers ramp up extraction to fill a proposed West Coast pipeline, which would carry more than one million barrels of oil per day.
The pipeline project was submitted to the federal Major Projects Office on July 2 for a “project of national interest” listing.
“The biggest nation-building projects in Canada’s history have succeeded through partnership,” Alberta Premier Danielle Smith said in a statement, calling the pipeline and the Pathways Project “two critical steps towards making Canada an energy superpower.”
The province has set an ambitious target to double its oil production to eight million barrels per day over the next 10 to 15 years, up from a record 4.8 million barrels per day reached in December 2025.
To accelerate development, Alberta has introduced a new 120-day approval timeline for major projects and pledged to streamline regulatory processes.
At the same time, the agreement attempts to address environmental concerns through the proposed Pathways Project. The CCS network is designed to transport and permanently store about six million tonnes of carbon dioxide annually in the Cold Lake region, contributing to a broader goal of 16 million tonnes of emission reductions.
Federal Energy and Natural Resources Minister Tim Hodgson called the project critical to maintaining a “thriving, responsible energy sector for the long-term.”
The multi-billion-dollar project is expected to create up to 40,000 jobs across Canada, though it remains subject to final regulatory approvals and definitive agreements.
The Oil Sands Alliance represents Canadian Natural Resources, Cenovus, ConocoPhillips Canada, Imperial, and Suncor. Alliance president Kendall Dilling said the MOU provides a positive framework to “help enable production growth and to advance the Pathways Project.”
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