India and Canada are working towards enhancing energy cooperation as they progress in negotiations on a Comprehensive Economic Partnership Agreement (CEPA). The anticipated partnership could establish a robust two-way energy supply chain, enabling India to import Canadian crude oil and natural gas while exporting refined petroleum products to Canada.
To advance these discussions, Canadian trade negotiators are scheduled to visit New Delhi early next month for the sixth round of negotiations. Both nations aim to finalize the agreement before Indian Prime Minister Narendra Modi’s visit to Canada on December 11–12.
This potential collaboration holds promise due to the complementary energy needs of both countries. Canada, being a significant energy producer, faces technical challenges in some refineries when processing heavy crude from Alberta’s oil sands. In contrast, certain Indian refineries can handle a broader range of crude grades, positioning India to supply refined fuels back to Canada. Additionally, potential cooperation could extend to areas such as liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, and uranium.
Bilateral relations between India and Canada have been gaining momentum, fueled by several high-level visits and trade discussions involving officials and business representatives from both countries. Negotiations on the CEPA, which began in March 2026, have seen five rounds of talks completed by October.
The comprehensive agreement aims to significantly boost bilateral trade, targeting an expansion to C$70 billion by 2030. In 2025, trade in goods and services between the two countries reached C$30.4 billion, underscoring the substantial potential for increased economic cooperation.