India and Canada are advancing discussions on strengthening energy cooperation as part of ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA). This potential partnership would enable a mutual energy supply chain, where India could import Canadian crude oil and natural gas while exporting refined petroleum products to Canada.
Canadian trade negotiators are slated to visit New Delhi for the sixth round of CEPA negotiations early next month. Both nations aim to finalize the agreement before Indian Prime Minister Narendra Modi visits Canada on December 11–12. The discussions also cover cooperation in areas such as liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products.
The collaboration could address the complementary energy needs of the two countries. Canada’s refineries, which may have limitations processing heavy crude from Alberta’s oil sands, could benefit from India’s capability to refine a broader range of crude grades. As a result, India could supply refined fuels to Canada while sourcing energy resources from Canadian producers.
Bilateral relations have been gaining momentum due to recent high-level visits and trade discussions involving officials and business representatives from both countries. The CEPA negotiations, which began in March 2026, have already seen five rounds of talks completed by October.
The proposed agreement aims to expand bilateral trade to C$70 billion by 2030. Trade in goods and services between India and Canada was valued at C$30.4 billion in 2025, indicating significant potential for further economic cooperation.