As India and Canada work towards finalizing a Comprehensive Economic Partnership Agreement (CEPA), the two nations are exploring enhanced energy cooperation. This move could establish a reciprocal energy supply chain, with India potentially importing Canadian crude oil and natural gas and exporting refined petroleum products to Canada.
The discussions come as Canadian trade negotiators plan to visit New Delhi next month for the sixth round of negotiations, aiming to finalize the agreement before Indian Prime Minister Narendra Modi’s scheduled visit to Canada on December 11–12. The focus on energy cooperation highlights the complementary nature of the countries’ energy sectors—Canada being a major energy producer and India one of the world’s largest consumers, with a robust refining industry.
Potential areas for cooperation include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Notably, some Canadian refineries face challenges in processing heavy crude from Alberta’s oil sands, while Indian refineries can handle a broader range of crude grades. This allows India to export refined fuels to Canada while importing raw energy resources from Canadian producers.
The bilateral relations between India and Canada have strengthened due to several high-level visits and trade discussions. Since negotiations on the CEPA began in March 2026, five rounds of talks have been completed by October. The proposed agreement aims to boost bilateral trade to C$70 billion by 2030, building on the C$30.4 billion in trade recorded in 2025.
This growing partnership underscores the potential for further economic collaboration between the two countries, with energy cooperation serving as a pivotal component in their trade negotiations. As both nations work toward concluding the CEPA, the mutual benefits of an integrated energy supply chain present a promising avenue for future economic growth.