India and Canada are progressing towards a significant energy cooperation as they advance negotiations on a Comprehensive Economic Partnership Agreement (CEPA). This prospective partnership aims to establish a two-way energy supply chain, with India set to import Canadian crude oil and natural gas, while supplying refined petroleum products back to Canada.
Canadian trade negotiators plan to visit New Delhi early next month for the sixth round of negotiations, with both countries aiming to finalize the agreement before Indian Prime Minister Narendra Modi’s scheduled visit to Canada on December 11–12. The collaboration could see both nations capitalizing on their complementary energy needs, as Canada is a major energy producer and India ranks among the world’s largest consumers of crude oil and natural gas, with a robust refining sector.
Potential areas for collaboration include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. The synergy is evident as some Canadian refineries face limitations in processing heavy crude from Alberta’s oil sands, while certain Indian refineries can handle a broader range of crude grades, creating an opportunity for India to supply refined fuels to Canada.
Bilateral relations have been gaining momentum, marked by high-level visits and trade discussions involving officials and business representatives from both countries. The CEPA negotiations, which commenced in March 2026, have seen five rounds of talks completed by October. The proposed agreement aims to significantly boost bilateral trade, targeting an expansion to C$70 billion by 2030, compared to the C$30.4 billion recorded in 2025.