Canada's largest oil-sands producers are targeting late 2027 or early 2028 for a final investment decision on the proposed Pathways carbon-capture and storage project in Alberta.

The timeline depends on agreements with the Alberta and federal governments, regulatory approvals and further project work.

Kendall Dilling, president of the Oil Sands Alliance, told Reuters that the companies expect to settle key fiscal terms with both governments by mid-November 2026.

A final investment decision would determine whether the companies commit to construction. No such decision has been made.

The project would collect carbon dioxide from oil-sands facilities in northern Alberta, move it through a shared pipeline and store it underground in the Cold Lake region.

The federal Major Projects Office says the first stage would capture and store six million tonnes of carbon dioxide annually by Jan. 1, 2035. A broader agreement calls for another 10 million tonnes in annual reductions by 2045.

The Oil Sands Alliance represents Canadian Natural Resources, Cenovus Energy, ConocoPhillips Canada, Imperial Oil and Suncor Energy.

The companies first presented a larger plan in 2021 that was connected to 22 million tonnes of reductions by 2030. The current schedule is smaller and extends further into the future.

Dilling said the earlier scale and timeline would have been difficult to deliver while controlling costs. The alliance now considers the staged approach more workable.

The cost remains a central issue. Cenovus chief executive Jon McKenzie said in June that Pathways could cost as much as $30 billion.

The project is linked to a July memorandum of understanding involving Alberta, Canada and the Oil Sands Alliance.

Under that agreement, the governments are considering financial and regulatory measures connected to carbon capture, oil-sands production growth and expanded pipeline capacity.

The federal Major Projects Office says Ottawa is considering operating-cost support, tax-credit clarifications and a joint regulatory working group. Alberta has committed to consider financial support connected to production growth and export access.

Those measures remain subject to legislation, regulation and final agreements. Their cost and division between governments and industry have not been fully disclosed.

The Pathways project also has a connection to a proposed pipeline carrying more than one million barrels of oil per day to the West Coast.

Prime Minister Mark Carney has tied federal support for increased export capacity to progress on reducing oil-sands emissions.

For Alberta, the next steps could affect oil-sands investment, construction work, carbon-storage development, provincial revenue and Canada's emissions plans.

The project still requires detailed regulatory review, consultation, completed engineering and a final financial commitment from the participating companies.