The Alberta and federal governments have signed a new agreement with Canada's five largest oilsands producers aimed at increasing oil production while advancing one of the world's largest proposed carbon capture and storage projects.The memorandum of understanding, announced Monday, establishes a framework to support higher oilsands output needed to supply a proposed new West Coast oil pipeline while moving forward with the Pathways carbon capture and storage (CCS) project.The agreement includes Alberta, the federal government and the Oil Sands Alliance, whose members are Canadian Natural Resources, Cenovus, ConocoPhillips Canada, Imperial Oil and Suncor.Premier Danielle Smith said the agreement marks a significant step toward Alberta's long-term goal of doubling oil production while expanding export infrastructure."The biggest nation-building projects in Canada's history have succeeded through partnership," Smith said. "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."The deal builds on a Canada-Alberta agreement signed in November 2025 to increase pipeline capacity, attract private-sector spending and accelerate major infrastructure projects.As part of the latest agreement, Alberta will continue working with industry to streamline regulatory approvals, building on the province's recently announced 120-day timeline for reviewing major projects.Federal Energy and Natural Resources Minister Tim Hodgson said the agreement supports both economic growth and emissions reduction."Canada has what it takes to be an energy superpower: resource abundance, growing international trade relationships and a world-class workforce," Hodgson said. "The Pathways Project is critical to delivering on these goals and maintaining a thriving, responsible energy sector for the long-term.".The memorandum outlines a policy and fiscal framework to support construction of the proposed Pathways project, which is designed to capture carbon dioxide emissions from multiple oilsands facilities and transport them through a shared pipeline network for permanent underground storage near Cold Lake.According to the province, the project is expected to permanently store about six million tonnes of carbon dioxide annually as part of a broader objective of reducing emissions by 16 million tonnes.Officials estimate the project could create up to 40,000 jobs across Canada and generate billions of dollars in combined government and private-sector spending.Energy and Minerals Minister Brian Jean said increasing oil production and reducing emissions can occur simultaneously."Growing Alberta's energy production and reducing emissions can go hand in hand," Jean said. "These projects together will attract investment, create tens of thousands of jobs in Alberta and secure lasting prosperity for future generations."Oil Sands Alliance president Kendall Dilling said the agreement provides a framework to support production growth while advancing the carbon capture project."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," Dilling said.The province's long-term objective is to double Alberta's oil production to eight million barrels per day over the next 10 to 15 years..The proposed West Coast pipeline, submitted to the Major Projects Office earlier this month for designation as a project of national interest, is expected to transport more than one million barrels of oil per day to Canada's Pacific coast.Alberta's crude oil production has already risen from about 4.1 million barrels per day in October 2022 to a record 4.8 million barrels per day by December 2025.The proposed Pathways project remains subject to regulatory approvals and the completion of final commercial agreements.
