India and Canada are actively pursuing closer energy cooperation as they progress in negotiations on a Comprehensive Economic Partnership Agreement (CEPA). This potential collaboration aims to establish a two-way energy supply chain, with India importing Canadian crude oil and natural gas and exporting refined petroleum products back to Canada.
Anticipating a significant milestone, Canadian trade negotiators are scheduled to visit New Delhi early next month for the sixth round of talks. Both nations are striving to finalize the agreement before Indian Prime Minister Narendra Modi’s planned visit to Canada on December 11–12.
The cooperation is set to explore various energy sectors, including crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. While Canada stands as a significant energy producer, India ranks among the world’s largest consumers of crude oil and natural gas, with an advanced refining industry.
This partnership could leverage the complementary energy needs of both countries. Some Canadian refineries face challenges in processing heavy crude from Alberta’s oil sands, which certain Indian refineries are equipped to handle. Consequently, India could supply refined fuels to Canada while sourcing energy resources from Canadian producers.
The bilateral relations between India and Canada have gained momentum, underpinned by several high-level visits and trade discussions involving officials and business representatives from both countries. The negotiations on the CEPA began in March 2026, with five rounds concluded by October.
The proposed agreement aims to significantly expand bilateral trade, targeting C$70 billion by 2030. As of 2025, trade in goods and services between the two nations reached C$30.4 billion, underscoring the potential for increased economic cooperation.