India and Canada are moving closer to establishing a robust energy partnership as they work towards finalizing a Comprehensive Economic Partnership Agreement (CEPA). This agreement, currently under negotiation, could pave the way for a dynamic two-way energy supply chain between the two nations, with India potentially importing Canadian crude oil and natural gas while exporting refined petroleum products to Canada.
Negotiators from Canada are set to visit New Delhi next month for the sixth round of discussions, with both countries aiming to conclude the agreement before Indian Prime Minister Narendra Modi’s visit to Canada on December 11–12. The talks, which began in March 2026, have seen five successful rounds, reflecting the growing momentum in bilateral relations.
The collaboration could be mutually beneficial as it aligns with the complementary energy needs of both countries. Canada, a major energy producer, faces challenges with some of its refineries’ ability to process heavy crude from Alberta’s oil sands. Conversely, India possesses refineries capable of handling a diverse range of crude grades, making it a suitable partner to supply refined fuels back to Canada.
Potential areas of cooperation include not only crude oil and natural gas but also liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, and uranium. These areas highlight the strategic importance of the energy sector in the ongoing trade discussions.
The ultimate goal of the CEPA is to significantly expand bilateral trade between India and Canada, aiming to reach C$70 billion by 2030. In 2025, trade in goods and services between the two nations was valued at C$30.4 billion, indicating substantial room for growth and deeper economic integration.
As negotiations advance, the proposed agreement holds the promise of fostering stronger economic ties and enhancing energy security for both countries, reflecting a shared commitment to harnessing complementary strengths for mutual benefit.