India and Canada are deepening their discussions on energy cooperation as part of ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA). This evolving partnership could lead to the establishment of a bilateral energy supply chain, where India would import Canadian crude oil and natural gas while exporting refined petroleum products back to Canada.
Negotiations for the CEPA, which began in March 2026, are progressing as Canadian trade negotiators plan to visit New Delhi next month for a sixth round of discussions. Both nations are working towards finalizing the agreement before Indian Prime Minister Narendra Modi’s scheduled visit to Canada on December 11-12. This agreement aims to significantly boost bilateral trade, targeting C$70 billion by 2030, compared to C$30.4 billion in goods and services trade recorded in 2025.
The potential areas for energy collaboration include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Canada, being a major energy producer, can benefit from India’s status as one of the world’s largest consumers of crude oil and natural gas, as well as its extensive refining capacity. This is particularly relevant as some Canadian refineries face challenges processing heavy crude from Alberta’s oil sands, while certain Indian refineries can manage a broader range of crude grades.
The strengthening of bilateral ties has been marked by several high-level visits and trade discussions involving officials and business leaders from both countries. The mutual interest in expanding energy cooperation reflects complementary needs and capacities, which could lead to enhanced trade relations and energy security for both nations.