Negotiations between Ottawa, Alberta and major oilsands producers on a massive carbon capture project are now two weeks beyond an initial deadline. An agreement on carbon pricing between the two levels of government is also past the April 1 target date.

Yet, the head of Cenovus Energy, who is also chair of the Canadian Association of Petroleum Producers (CAPP), remains hopeful.

And the entire industry, along with many groups in Canada, are waiting to see if the promise of a ”grand bargain” becomes a reality, and a new oil pipeline and carbon capture network are eventually built.

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“I wouldn’t describe myself as confident — I’m hopeful,” said Jon McKenzie, chief executive of Cenovus Energy, one of five members of the Oil Sands Alliance, which has proposed building a $16.5-billion carbon capture network in northern Alberta.

“This is something that we need to do as a country, and we need to get this across the goal line, and we need to get this debate behind us, and we need to start getting things built.”

As part of an energy memorandum of understanding (MOU) reached between the Carney and Smith governments in November, the two sides agreed to negotiate on several key policies.

It supported the idea of a “grand bargain,” including developing a new oil pipeline to the West Coast, which has been pitched by Alberta. But it is conditional on the proposed Pathways carbon capture network being developed, with a CO2 pipeline built between oilsands facilities that connects to an underground storage hub near Cold........

© Calgary Herald