Canadian Natural Resources executive chairman Murray Edwards has stated unequivocally that the oilsands industry wants the $20-billion Pathways carbon capture project in Alberta to proceed. However, he emphasized that more work is needed on environmental, fiscal, and regulatory policies to make the massive decarbonization network economically viable.
Industry Commitment to Pathways
In an interview Thursday before the company's annual general meeting in Calgary, Edwards said, "I sit around on a weekly basis with my peers from other companies. There is a full commitment on the industry's part to get Pathways done. We've invested hundreds of millions of dollars in pre-engineering and a feasibility study and field work on Pathways."
Edwards stressed that the industry is dedicated to reducing carbon emissions but requires clear rules to advance the project. "Yes, we want to go ahead, but we need to get the rules as it relates to environmental processes, regulatory process, fiscal process, that allow it to advance on a basis that makes economic sense," he said.
Federal-Provincial Negotiations
The comments come as negotiations on the federal-provincial memorandum of understanding on energy (MOU) intensify. Signed in November, the MOU commits the federal government to support Alberta's proposal for a new million-barrel-per-day oil pipeline to the West Coast, provided it is paired with a carbon capture project in northern Alberta.
Two side agreements under the MOU had an April 1 deadline but have not yet been reached. These include a deal to increase Alberta's industrial carbon tax to an effective rate of $130 per tonne of CO2 emissions, and a pact between governments and the Oil Sands Alliance to advance the Pathways project.
Federal-provincial negotiations on carbon pricing have taken longer than expected, though a source indicated this week that a deal could be reached within the next 10 days to two weeks. Prime Minister Mark Carney is scheduled to meet with Premier Danielle Smith in Ottawa on Friday.
Industry and Environmental Perspectives
The Pathways project was first proposed in 2021 by member companies of the Oil Sands Alliance, which includes Canadian Natural Resources, Suncor Energy, Imperial Oil, and Cenovus Energy. However, it has not yet received a final investment decision.
Some industry leaders question the impact of an industrial carbon tax on attracting investment for production growth, while environmental groups oppose removing the levy. Keith Stewart of Greenpeace Canada said, "The oilsands producers have never, in my view, been serious about the Pathways project. It has always been a delay tactic."
On Tuesday, Cenovus Energy CEO Jon McKenzie noted that the "national dialogue on further development of the oilsands has been myopically focused on the climate agenda and climate policy," making the sector uncompetitive.
Edwards concluded, "We think that Pathways is the industry's commitment to showing that we're committed to bring carbon emissions down."
