India and Canada are working towards a potential energy cooperation as they advance negotiations on a Comprehensive Economic Partnership Agreement (CEPA). This collaboration aims to establish a two-way energy supply chain, with India importing Canadian crude oil and natural gas while supplying refined petroleum products to Canada.
The two nations are focused on concluding the agreement before Indian Prime Minister Narendra Modi’s visit to Canada on December 11–12. To facilitate this, Canadian trade negotiators are scheduled to visit New Delhi early next month for the sixth round of talks. The CEPA negotiations, which began in March 2026, have already seen five rounds of discussions.
Canada, a major energy producer, and India, one of the world’s largest consumers of crude oil and natural gas with a robust refining industry, stand to benefit from this partnership. Canadian refineries, which face technical challenges in processing heavy crude from Alberta’s oil sands, could find a market for their unrefined products, while Indian refineries, capable of handling a diverse range of crude grades, could supply refined fuels back to Canada.
Areas of potential cooperation extend beyond crude oil to include liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and other refined petroleum products. This proposed agreement also aims to expand bilateral trade to C$70 billion by 2030, building on the C$30.4 billion trade in goods and services recorded in 2025.
The momentum in India-Canada relations has been fueled by high-level visits and discussions involving officials and business representatives from both countries. As both sides seek to finalise the CEPA, the focus remains on leveraging their complementary energy needs to enhance economic cooperation and trade.