Pathways Carbon Capture and Storage Project
The Pathways Project is a proposed carbon capture and storage network across northeastern Alberta, led by the Oil Sands Alliance (formerly the Pathways Alliance). Originally estimated at C$16.5 billion in 2022, the project cost is now estimated at C$20 to C$30 billion. The network would capture CO₂ from oil sands processing facilities, transport it via a 650-kilometre pipeline network, and permanently store it underground in a geological formation near Cold Lake.
On 2 July 2026, the governments of Canada and Alberta and the five Oil Sands Alliance member companies signed a trilateral memorandum of understanding to advance the project. Under the agreement, the Pathways Project would proceed in stages, targeting six million tonnes of CO₂ captured annually via CCS by January 2035, with a further ten million tonnes of emissions reductions through expanded CCS or other technologies by 2045.
Source: Oil Sands Alliance; CBC News, 13 July 2026; McCarthy Tétrault, 20 July 2026
The Pathways Project comprises a CO₂ transportation pipeline network and a centralised geological storage hub. The pipeline network would connect oil sands facilities in the Fort McMurray, Christina Lake, and Cold Lake regions to the storage hub in the Cold Lake area. The project includes 16 lateral pipeline segments connecting to 13 oil sands sites (both mining and steam-assisted operations), feeding into a main transportation line and distribution pipeline to the storage hub.
Carbon capture equipment at individual oil sands facilities is not part of the Pathways Project itself; each Oil Sands Alliance member company is responsible for installing capture technology at its own operations. The Pathways Project covers only the transportation and storage infrastructure.
Canadian Natural Resources Limited is filing all regulatory applications with the Alberta Energy Regulator on behalf of the five project proponents.
Source: Oil Sands Alliance, Pathways Project; Global News, 27 May 2026
| Category |
Information |
| Location |
Northeastern Alberta (Fort McMurray, Christina Lake, Cold Lake regions; Treaty 6 and 8 territories) |
| Proponent |
Oil Sands Alliance (formerly the Pathways Alliance) |
| Members |
Canadian Natural Resources, Cenovus Energy, ConocoPhillips Canada, Imperial Oil, Suncor Energy |
| Project Type |
CO₂ transportation and geological storage |
| Pipeline Network |
Over 650 kilometres (16 lateral segments connecting 13 oil sands sites) |
| Storage Formation | Basal Cambrian Sandstone, 1,000 to 2,000 metres below surface |
| CCS Capture Target | 6 million tonnes CO₂ annually by 2035 |
| Total Emissions Reduction Target |
16 million tonnes annually by 2045 (CCS plus other technologies) |
| Initial Estimated Cost | C$16.5 billion (2022 estimate) |
| Updated Cost Estimate | C$20 to C$30 billion (June 2026, Cenovus CEO) |
| Status | Trilateral MOU signed; regulatory applications filed with AER; final investment decision targeted for late 2027 |
Source: Oil Sands Alliance project overview; CBC News, 13 July 2026; Oil Sands Alliance, name change, 20 February 2026
Development
The Oil Sands Pathways to Net Zero initiative was established in 2021 by six major oil sands companies. In June 2022, the consortium rebranded as the Pathways Alliance and announced the CCS project. In February 2026, the industry association renamed itself the Oil Sands Alliance, with the CCS project retaining the name “Pathways Project.”
Cenovus Energy completed its acquisition of MEG Energy on 13 November 2025, reducing consortium membership from six to five companies.
In February 2023, the consortium awarded a C$10 million engineering contract to Wood for detailed design of the CO₂ transportation pipeline. On 4 January 2023, the Pathways Alliance and the Alberta government entered into a Carbon Sequestration Evaluation Agreement, permitting detailed geological evaluation of the proposed storage hub site in the Cold Lake area.
Canadian Natural Resources began filing regulatory applications to the Alberta Energy Regulator in March 2024 on behalf of all proponents. By the end of 2024, the consortium had submitted 47 pipeline agreement applications along with conservation and reclamation plans, and 60 Crown land applications for the pipeline right of way. Two evaluation wells were drilled in 2024 to assess the geological properties of the Basal Cambrian Sandstone and overlying salt formations.
On 27 November 2025, Canada and Alberta signed a bilateral memorandum of understanding establishing that the Pathways Project and a proposed West Coast oil pipeline are mutually dependent. The MOU set an April 2026 deadline for a trilateral agreement with the Oil Sands Alliance companies. On 15 May 2026, Canada and Alberta signed an implementation agreement addressing industrial carbon pricing, federal investment tax credit extensions, and regulatory commitments. The trilateral MOU between Canada, Alberta, and the five Oil Sands Alliance companies was signed on 2 July 2026 and announced on 13 July 2026.
Source: Oil Sands Alliance, Our History; Globe Newswire, Wood contract, 22 February 2023; Cenovus, MEG acquisition, 13 November 2025; Cassels, Canada-Alberta MOU, 28 November 2025; Torys, Implementation Agreement, 19 May 2026; CBC News, 13 July 2026
Development Stage (July 2026)
Status: Trilateral MOU signed; regulatory applications in progress
Source: Oil Sands Alliance, Pathways MOU announcement, 13 July 2026; McCarthy Tétrault, 20 July 2026
| Date |
Milestone |
| 2021 |
Oil Sands Pathways to Net Zero initiative established |
| June 2022 |
Pathways Alliance announced; CCS project disclosed |
| 4 January 2023 | Carbon Sequestration Evaluation Agreement signed with Alberta |
| February 2023 |
Wood awarded C$10 million pipeline engineering contract |
| March 2024 |
First regulatory applications filed with AER by Canadian Natural |
| 25 October 2024 | AER declines provincial environmental impact assessment request |
| 13 November 2025 |
Cenovus completes acquisition of MEG Energy; consortium reduced to five members |
| 27 November 2025 |
Canada-Alberta bilateral MOU signed |
| 20 February 2026 | Pathways Alliance renamed Oil Sands Alliance |
| 15 May 2026 |
Canada-Alberta implementation agreement signed |
| 2 July 2026 |
Trilateral MOU signed (Canada, Alberta, Oil Sands Alliance) |
| 13 July 2026 | Trilateral MOU publicly announced |
| 15 November 2026 |
Definitive agreements with individual companies expected |
| Late 2027 |
Final investment decision targeted |
| By January 2035 |
CCS component: 6 mtpa CO₂ captured and stored |
| By 2045 | Total: 16 mtpa emissions reductions (CCS plus other technologies) |
Source: Oil Sands Alliance, Our History; ABLawg, AER EIA decision, 23 December 2024; Cenovus, 13 November 2025; Globe and Mail, 21 February 2026; Torys, 19 May 2026; CBC News, 13 July 2026; McCarthy Tétrault, 20 July 2026
Cost Summary
The original project cost was estimated at C$16.5 billion in 2022. At the Global Energy Show in June 2026, Cenovus CEO Jon McKenzie stated the cost is now likely in the range of C$20 billion to C$30 billion. The Oil Sands Alliance submitted a first-phase cost estimate of C$20 billion in a briefing to the federal government.
| Component |
Amount |
| Initial estimate (2022) |
C$16.5 billion |
| Updated estimate (June 2026) |
C$20 to C$30 billion |
| First-phase briefing to federal government | C$20 billion |
The trilateral MOU establishes a financial framework combining federal and provincial incentives with proponent capital:
Source: CBC News, 13 July 2026; National Observer, 14 July 2026; Alberta Carbon Capture Incentive Program; Torys, 19 May 2026
Alberta Energy Regulator (Primary Approval Authority)
Canadian Natural Resources is the named proponent for all regulatory applications on behalf of the five member companies. Applications have been filed since March 2024, including 47 pipeline agreement applications, conservation and reclamation plans, and 60 Crown land applications for the pipeline right of way. The AER processes applications for pipeline construction and operation permits, CO₂ injection well licences, and environmental protection permits.
On 25 October 2024, the AER declined a request from Ecojustice (filed May 2024 on behalf of environmental organisations and a First Nation) to require a provincial environmental impact assessment under the Environmental Protection and Enhancement Act.
Impact Assessment Agency of Canada
On 2 December 2024, seven First Nations (Beaver Lake Cree Nation, Cold Lake First Nations, Frog Lake First Nation, Heart Lake First Nation, Kehewin Cree Nation, Onion Lake Cree Nation, and Whitefish (Goodfish) Lake First Nation #128) submitted a request to the federal Minister of Environment and Climate Change for designation of the Pathways Project under section 9(1) of the Impact Assessment Act. On 13 December 2024, the IAAC suspended the 90-day timeline for responding to the designation request at the proponent's request, as Pathways Alliance stated it could not provide a complete response to the Agency within the original deadline.
The designation request remains suspended. As of the trilateral MOU in July 2026, the project is advancing through provincial regulatory processes.
Source: Impact Assessment Agency of Canada, project page; IAAC, timeline suspension notice, 20 December 2024; ABLawg, AER EIA decision, 23 December 2024
Indigenous Participation
The project is located across oil sands operations in Treaty 6 and 8 territories. The proposed CO₂ storage hub is in the Cold Lake area, with several First Nations holding reserve lands in proximity to the proposed storage site.
The Oil Sands Alliance states that consultation and engagement with local Indigenous groups and communities along the proposed pipeline route began in autumn 2023 and is ongoing.
The November 2025 Canada-Alberta bilateral MOU states that both governments agree to work cooperatively to consult and accommodate Indigenous peoples in Alberta in connection with the project. The trilateral MOU of July 2026 includes further commitments regarding Indigenous engagement.
Source: Oil Sands Alliance, Pathways Project FAQs; Cassels, Canada-Alberta MOU analysis, 28 November 2025
Technical Specifications
CO₂ Transportation Pipeline Network
Geological Storage Hub
Emissions Reduction Targets (Per Trilateral MOU)
These targets represent a reduction from the original 2022 goal of 22 mtpa by 2030.
Source: Oil Sands Alliance, project overview; Oil Sands Alliance, CCS page; Oil Sands Alliance, FAQs; Global News, 27 May 2026; November 2025 MOU, Government of Alberta
The project's revenue framework is structured around Alberta's Technology Innovation and Emissions Reduction (TIER) system, which issues Emission Performance Credits to facilities achieving specified emissions reductions. The Canada-Alberta implementation agreement of May 2026 establishes a minimum effective credit price of C$130 per tonne under the TIER system.
The trilateral MOU contemplates extending and refining carbon capture incentives, including the federal CCUS investment tax credits, provincial incentives under ACCIP, and potential operating-cost supports. The federal government has also indicated it may extend Clean Fuel Regulation credits to upstream CCS projects, which would provide an additional revenue stream.
Definitive financial agreements with individual Oil Sands Alliance companies are expected by 15 November 2026.
Source: Torys, Implementation Agreement, 19 May 2026; McCarthy Tétrault, trilateral MOU analysis, 20 July 2026; National Observer, 20 July 2026