Calgary-based Canadian Natural Resources Ltd. is deferring a major oilsands mine expansion, citing uncertainty in Ottawa's environmental policies. The company had planned to invest approximately $150 million this year on early engineering for the $8.25-billion Jackpine mine expansion north of Fort McMurray, Alberta.
President Scott Stauth stated the project's delay is due to the "economic burden for long-term growth investments" created by evolving carbon pricing and methane emissions rules. Stauth emphasized the project's early stage allows for flexibility in shifting timelines.
Alberta and the federal government have been working on agreements regarding industrial carbon pricing and methane, with a target deadline of April 1. Stauth expressed optimism for a positive outcome.
In other news, Canadian Natural recently acquired natural gas assets in Alberta's Peace River area from Tourmaline Oil Corp. for $765 million.
The company is reducing its 2026 capital expenditures by approximately $310 million, including the Jackpine project deferral, bringing this year's total outlay to under $6 billion.
Canadian Natural also announced an increase in its quarterly dividend to 62.5 cents per share. Fourth-quarter profit reached $5.3 billion ($2.54 per share), a significant rise from $1.14 billion ($0.54 per share) in the prior year's quarter.