India and Canada are advancing negotiations on a Comprehensive Economic Partnership Agreement (CEPA) that could significantly enhance energy cooperation between the two nations. The anticipated deal aims to establish a bilateral energy supply chain, enabling India to import Canadian crude oil and natural gas, while exporting refined petroleum products to Canada.
Canadian trade negotiators are scheduled to visit New Delhi early next month for the sixth round of discussions. Both parties are working towards finalizing the agreement ahead of Indian Prime Minister Narendra Modi’s visit to Canada on December 11-12.
The potential areas of collaboration include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Canada, as a major energy producer, and India, one of the largest consumers of crude oil and natural gas globally, stand to benefit from this complementary partnership. Notably, Indian refineries possess the capability to process a wider range of crude grades, including those from Alberta’s oil sands, which Canadian refineries may struggle to handle.
Bilateral relations between India and Canada have seen increased momentum, spurred by several high-level visits and trade discussions involving officials and business representatives from both countries. The negotiations on the CEPA, which began in March 2026, have already seen five rounds of talks completed by October.
The agreement seeks to expand bilateral trade to C$70 billion by 2030, up from the C$30.4 billion recorded in 2025. This highlights the significant potential for further economic cooperation between the two countries, particularly in the energy sector.