By jasonwoodhead23 - CNRL, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=71410484
CALGARY — Canadian Natural Resources Ltd. is delaying plans to advance a major oilsands expansion north of Fort McMurray as it waits for governments to finalize rules on carbon pricing and methane emissions.
The Calgary-based company had planned to spend about $150 million this year on early engineering and design work for the proposed $8.25-billion expansion of its Jackpine mine. The spending has now been removed from its 2026 capital plans, cutting the company’s projected operating and capital expenditures by roughly $310 million.
The Jackpine project, part of the larger Albian Sands operation, could eventually add about 150,000 barrels per day of bitumen production. The mine currently has production capacity of about 328,000 barrels per day.
Canadian Natural says uncertainty surrounding federal and provincial negotiations on industrial carbon pricing and methane regulations has made it difficult to proceed with long-term investments.
Ottawa and Alberta signed a memorandum of understanding on energy development last year that aims to settle outstanding issues around industrial carbon pricing and methane rules by April 1.
The project was originally approved in 2013 when Shell Canada operated the mine. Canadian Natural gained full control of the Albian operation last year after acquiring most of Shell’s oilsands assets in 2017 and completing a later asset swap.
The delay comes as industry analysts note that even modest changes to emissions rules or carbon costs can significantly affect the economics of large oilsands mines, which typically operate for decades.
Canadian Natural reported strong financial results despite softer oil prices last year. The company posted an adjusted profit of about $7.4 billion in 2025 and generated $15.5 billion in adjusted funds flow, compared with $14.9 billion the previous year.
Comments