India and Canada are actively exploring avenues for enhanced energy cooperation as part of ongoing negotiations aimed at establishing a Comprehensive Economic Partnership Agreement (CEPA). This potential partnership seeks to create a mutual energy supply chain, with India poised to import Canadian crude oil and natural gas, while exporting refined petroleum products back to Canada.
In a move to advance these discussions, Canadian trade negotiators are scheduled to visit New Delhi early next month for the sixth round of negotiations. Both nations are eager to finalize the agreement before Indian Prime Minister Narendra Modi’s anticipated visit to Canada on December 11–12.
The proposed areas of cooperation encompass crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Canada, a significant energy producer, and India, one of the world’s largest consumers of crude oil and natural gas with a robust refining sector, can potentially complement each other’s energy demands. Notably, some Canadian refineries face challenges in processing heavy crude from Alberta’s oil sands, whereas certain Indian refineries are equipped to handle a diverse range of crude grades. This synergy could see India supplying refined fuels to Canada while sourcing energy resources from Canadian producers.
Bilateral relations between the two countries have been gaining momentum, bolstered by high-level visits and trade discussions involving officials and business representatives. The CEPA negotiations, which began in March 2026, have seen five rounds of talks completed by October. The agreement aims to boost bilateral trade to C$70 billion by 2030, building upon the C$30.4 billion trade in goods and services recorded between India and Canada in 2025.
This energy cooperation initiative underscores the strategic importance of the agreement, promising to enhance economic ties and facilitate a more sustainable energy infrastructure between the two nations. As negotiations advance, both countries stand to benefit significantly from the proposed partnership, aligning their economic and energy interests on a global scale.