India and Canada are actively working towards strengthening their energy cooperation as they continue to negotiate a Comprehensive Economic Partnership Agreement (CEPA). This potential agreement aims to establish a mutually beneficial energy supply chain, with India considering the import of Canadian crude oil and natural gas while exporting refined petroleum products to Canada.
Significant progress in these negotiations is expected as Canadian trade negotiators prepare to visit New Delhi for a sixth round of discussions early next month. Both countries are keen on finalizing the agreement before Indian Prime Minister Narendra Modi’s scheduled visit to Canada on December 11–12.
The energy partnership could encompass several areas including crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Given that Canada is a major energy producer and India ranks among the largest consumers and refiners of crude oil and natural gas, this partnership seeks to leverage their complementary energy needs. Notably, some Canadian refineries face hurdles in processing heavy crude from Alberta’s oil sands, whereas Indian refineries have the capacity to handle various crude grades, presenting an opportunity for India to supply refined fuels back to Canada.
The momentum in bilateral relations has been fueled by several high-level visits and trade discussions involving officials and business representatives from both nations. Initiated in March 2026, the CEPA negotiations have already seen five rounds of talks by October.
The overarching goal of the proposed agreement is to expand bilateral trade to C$70 billion by 2030. Trade in goods and services between the two countries was recorded at C$30.4 billion in 2025, showcasing significant potential for enhanced economic ties.