Canada, Alberta province reach implementation agreement involving new pipeline


By Lin Wei

OTTAWA, May 15 (Xinhua) -- Canadian Prime Minister Mark Carney and Alberta Premier Danielle Smith announced Friday that they have reached an implementation agreement designed to diversify the country's energy exports, reduce emissions, and build a stronger and more sustainable economy.

Under the agreement, Alberta province will submit a comprehensive proposal by July 1 for a new bitumen pipeline to Asian markets, capable of transporting at least one million barrels of low-emission bitumen per day. The federal government intends to designate it as a project of national interest by Oct. 1.

The pipeline will be dependent on the Pathways Project, one of the world's largest carbon capture, utilization and storage project.

The agreement also establishes a binding carbon pricing framework, setting an effective carbon price of 130 Canadian dollars (about 95 U.S. dollars) per tonne by 2040, alongside a joint issuance of 75 million tonnes of Carbon Contracts for Difference to de-risk green investments.

The deal builds on a November 2025 Memorandum of Understanding and follows recent agreements on streamlined environmental reviews and methane emissions reductions. (1 Canadian dollar = 0.73 U.S. dollar)

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