Alberta’s government, the Government of Canada and Canada’s five largest oilsands producers (the ‘Oil Sands Alliance’) have signed a memorandum of understanding (MOU) which provides a framework that will enable the Oil Sands Alliance to substantially increase its oil production necessary to filling the new West Coast oil pipeline, while also building Pathways, the world’s largest Carbon Capture and Storage (CCS) Project.

This landmark agreement will usher in a new era of oilsands investment, support emissions-reduction and help grow Alberta’s economy.

The agreement builds on the Canada-Alberta MOU signed in November 2025, which established a shared commitment to increase pipeline egress for Canadian energy, attract investment and advance major nation-building infrastructure projects. Alberta’s government has also introduced a new 120-day approval time frame to accelerate major project development, reduce delays and improve Alberta’s position as a competitor for global investment. As part of this MOU, Alberta’s government will work with industry on streamlining and simplifying Alberta’s regulatory processes so that producers are able to quickly ramp up and grow their production while maintaining Alberta’s world-class environmental standards.

“The biggest nation-building projects in Canada’s history have succeeded through partnership. This agreement shows what can be achieved when governments and industry work together to grow our economy, strengthen our energy security and unlock new opportunities for people across Canada. The West Coast oil pipeline and Pathways Project are two critical steps towards making Canada an energy superpower and ensuring Alberta remains a destination of choice for investment, innovation and responsible energy development.”

“Canada has what it takes to be an energy superpower: resource abundance, growing international trade relationships and a world-class workforce. Over the last eight months, we have been steadily delivering on each commitment in the Canada-Alberta MOU, working with Alberta and the energy industry to build major energy infrastructure, reduce emissions, create jobs and prosperity, and secure energy sovereignty. The Pathways Project is critical to delivering on these goals and maintaining a thriving, responsible energy sector for the long-term.”

The MOU outlines a policy and fiscal framework to support the development of the proposed Pathways Project. As an important step to achieving 16 MT of emission reductions, Pathways is expected to transport and permanently store approximately six million tonnes of captured carbon dioxide annually from multiple oil sands facilities through a shared transportation network and a storage hub in the Cold Lake region.

The Pathways Project is expected to create up to 40,000 jobs across the country and represents billions of dollars in federal and industry investment in Alberta.

The MOU’s framework for growth will also unlock more investment, job creation and production in Alberta’s energy sector by working with industry to implement financial incentives that will attract tens of billions in new investment for oil and gas production growth.

“Growing Alberta’s energy production and reducing emissions can go hand in hand. This is one of the biggest agreements for Alberta in decades, especially when partnered with the West Coast oil pipeline. These projects together will attract investment, create tens of thousands of jobs in Alberta and secure lasting prosperity for future generations.”

“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 to advance the Pathways Project. It helps meet our shared vision to grow Canadian oil production and benefit Canadians across the country. Our members will continue to work with both the provincial and federal governments to ensure Canada is a competitive destination for energy investment.”

The proposed Pathways Project has been identified as a strategic priority by Alberta and Canada and is expected to reinforce Alberta’s leadership in carbon capture, utilization and storage technologies while helping maintain the competitiveness of Canada’s oil sands sector. The project remains subject to regulatory approvals and the execution of definitive agreements.

Quick facts

• Alberta has a goal of doubling our oil production to eight million barrels per day over the next 10 to 15 years.
• The proposed West Coast oil pipeline was submitted to the Major Projects Office on July 2 for project of national interest listing. This pipeline will transport more than one million barrels of oil per day to Canada’s west coast.
• Total crude oil and equivalent production in Alberta increased from about 4.1 million barrels per day in October 2022, to a record 4.8 million barrels per day in December 2025.
• Enbridge recently announced its final investment decision on the Mainline Optimization Phase 1 project, which will add capacity for an additional 250,000 barrels per day to the company’s Mainline network and Flanagan South Pipeline, while South Bow announced plans for their Prairie Connector pipeline to connect with the Bridger pipeline and is expected to export 450,000 barrels per day of Alberta bitumen to the U.S. and Gulf Coast.
• The proposed Pathways Project would create one of the world’s largest carbon capture and storage infrastructure networks.
• Alberta has invested approximately $2 billion to support carbon capture, utilization and storage-related projects and programs.
• The Oil Sands Alliance represents five major oil sands producers: Canadian Natural, Cenovus, ConocoPhillips Canada, Imperial and Suncor.
• Through the Alberta Carbon Trunk and Quest facilities, Alberta has already successfully captured more than 19 million tonnes of carbon dioxide.

Related news

• West coast pipeline, private partner, oilsands production and pathways (July 2, 2026)
• Advancing an oil pipeline to the west coast (May 15, 2026)

Related information

• Trilateral Memorandum of Understanding
• Oil Sands Alliance
• Alberta Carbon Capture Incentive Program
• Carbon capture, utilization and storage in Alberta
• Canada-Alberta Memorandum of Understanding