India and Canada are intensifying efforts to enhance energy cooperation as they work towards finalizing a Comprehensive Economic Partnership Agreement (CEPA). The proposed agreement seeks to establish a mutually beneficial energy supply chain, where India would import Canadian crude oil and natural gas, while exporting refined petroleum products back to Canada.
Canadian trade negotiators are scheduled to visit New Delhi next month for the sixth round of discussions. Both nations are aiming to conclude the negotiations before Indian Prime Minister Narendra Modi’s visit to Canada on December 11–12. The potential areas of cooperation include 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, stand to gain from this partnership. Some Canadian refineries struggle to process heavy crude from Alberta’s oil sands, whereas Indian refineries are equipped to handle a wider array of crude grades. This compatibility positions India to supply refined fuels to Canada while sourcing energy resources from Canadian producers.
Bilateral relations between the two countries have been bolstered by several high-level visits and trade discussions. Negotiations on the CEPA began in March 2026, and five rounds have been completed so far. The agreement aims to boost bilateral trade to C$70 billion by 2030, up from C$30.4 billion in 2025, indicating significant potential for increased economic cooperation.
The ongoing talks and potential agreement underscore the complementary energy needs and economic synergies between India and Canada, promising a strengthened partnership and expanded trade ties.