India and Canada are working towards strengthening their energy cooperation as part of ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA). This collaboration aims to create a two-way energy supply chain, with India potentially importing Canadian crude oil and natural gas while exporting refined petroleum products to Canada.
The sixth round of CEPA negotiations is scheduled to take place in New Delhi early next month, with Canadian trade negotiators set to visit. Both nations aim to finalize the agreement ahead of Indian Prime Minister Narendra Modi’s visit to Canada on December 11–12.
This potential partnership is driven by the complementary energy needs of the two countries. Canada, a major energy producer, faces certain refining limitations, particularly with heavy crude from Alberta’s oil sands. In contrast, India’s refineries are equipped to process a wider range of crude grades, allowing it to supply refined fuels back to Canada.
Additionally, the areas of cooperation could extend to liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, and uranium. As India is one of the world’s largest consumers of crude oil and natural gas, the agreement could significantly enhance bilateral trade, which reached C$30.4 billion in 2025. The proposed CEPA aims to increase this figure to C$70 billion by 2030.
Efforts to strengthen bilateral relations have seen renewed momentum following several high-level visits and trade discussions involving officials and business representatives from both countries. The negotiations on the CEPA originally began in March 2026, with five rounds completed by October, signaling a commitment to deepening economic ties.