Canada and India have agreed to strengthen energy trade ties, with Canada set to supply liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil, while India will export refined petroleum products, marking a move towards deeper bilateral energy cooperation. The arrangement is aimed at improving energy security for both countries and leveraging their respective strengths across the hydrocarbons value chain.
Under the proposed framework, Canada’s vast reserves of natural gas and crude are expected to support India’s growing energy demand, particularly as the country looks to diversify supply sources and reduce exposure to geopolitical risks. Supplies of LNG and LPG could help India meet rising requirements from power generation, city gas distribution and household consumption, while crude imports would feed India’s large refining system.
In return, India is positioned to export refined fuels such as diesel, petrol and aviation turbine fuel to international markets, including Canada and third countries. With some of the world’s most complex and cost-efficient refineries, India has been expanding its role as a global refining hub, processing imported crude and supplying value-added petroleum products.
Officials and industry experts say the two-way trade could pave the way for long-term contracts, joint investments in infrastructure, and collaboration on logistics and shipping. The partnership also aligns with broader efforts by both countries to deepen economic engagement and build resilient energy supply chains amid shifting global energy dynamics.
