Canada and India have agreed to expand their trade in oil, liquefied natural gas (LNG) and petroleum products as both nations look to reset and strengthen strategic ties after a period of diplomatic chill. The commitment was announced on the sidelines of India Energy Week in Goa, where officials relaunched a long-dormant ministerial energy dialogue aimed at deepening cooperation in energy and related sectors.
Canadian Energy Minister Tim Hodgson and India’s Petroleum and Natural Gas Minister Hardeep Singh Puri agreed that Ottawa will boost shipments of crude, LNG, and liquefied petroleum gas (LPG) to meet India’s rising energy demand. In return, India will increase exports of refined petroleum products to Canada a reciprocal approach that signals deeper integration in energy supply chains between the two democracies.
The relaunch of the energy dialogue previously stalled following a diplomatic dispute over the killing of a Canadian Sikh activist reflects a broader effort to reset bilateral relations and tap into the significant untapped potential of the India–Canada economic partnership.
Key Highlights: Canada–India Energy Reset
- Canada and India pledge to expand oil and gas trade under renewed energy dialogue.
- Ottawa to increase exports of crude oil, LNG and LPG to India.
- New Delhi to ship more refined petroleum products to Canada.
- The energy dialogue was relaunched at India Energy Week in Goa.
- Deal comes amid Canada’s push to diversify export markets beyond the United States.
- Talks form part of a broader initiative toward a comprehensive economic partnership agreement.
Strategic Context and Economic Significance
The renewed energy partnership comes at a time when both countries are looking to adapt to shifting global energy markets. India, one of the fastest-growing major economies, continues to increase its energy import portfolio to secure supplies for expanding industry and infrastructure. Meanwhile, Canada is seeking to reduce its heavy reliance on the United States historically its dominant energy export market — by forging deeper ties with Asian consumers such as India.
Two-way merchandise trade between Canada and India reached C$13.3 billion (about $9.7 billion) in 2024, but energy accounted for only a small share of that total. Both governments see an opportunity to significantly scale up this figure, especially in oil and gas.
Beyond Fossil Fuels: Wider Energy Cooperation
Officials from both sides also highlighted plans to explore cooperation in emerging energy sectors such as hydrogen, biofuels, battery storage, critical minerals, electricity systems, and the use of artificial intelligence in energy infrastructure. This broader agenda underscores the long-term strategic dimension of the Canada India energy reset.
What’s Next
Canadian Prime Minister Mark Carney is expected to visit India in the coming weeks to further advance this reset and negotiate additional partnerships, potentially as part of a Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
The renewed energy dialogue and enhanced trade commitments mark a notable shift toward deeper practical cooperation, reflecting evolving geopolitical realities and mutual economic interests in the global energy landscape.
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