Natural Resources Minister Tim Hodgson told Bloomberg that he’s “highly confident” oil companies can absorb the cost of the project, given the way Ottawa and Alberta structured their energy pact earlier this month. (Bloomberg)

Talking point: Alberta Premier Danielle Smith and Prime Minister Mark Carney recently announced they would increase the market price of the industrial carbon tax and work toward approving a new pipeline to the West Coast by September 2027. According to the terms of the deal, the pipeline cannot go ahead without the Pathways project. Ottawa and Alberta also agreed to a jointly funded “contracts for difference” program that will underpin up to 75 megatonnes of emissions-reductions projects over 10 years, making Ottawa and Alberta each liable for up to $600 million. Hodgson said oil companies were not part of the carbon price negotiations, but they will be invited to weigh in on how to move the Pathways project forward.