India and Canada are advancing negotiations on a Comprehensive Economic Partnership Agreement (CEPA) that includes potential energy cooperation, aiming to establish a bilateral energy supply chain. The proposed partnership could see India importing Canadian crude oil and natural gas, while exporting refined petroleum products back to Canada. This arrangement aligns with India’s status as one of the world’s largest consumers of crude oil and natural gas and its extensive refining capabilities, juxtaposed with Canada’s role as a major energy producer.
Negotiators from Canada are scheduled to arrive in New Delhi next month for the sixth round of CEPA talks, with both countries hoping to finalize the agreement by the time Indian Prime Minister Narendra Modi visits Canada on December 11–12. Areas of cooperation under consideration include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and other refined petroleum products.
The complementary nature of the two countries’ energy needs could benefit both sides. Some Canadian refineries face technical challenges in processing heavy crude from Alberta’s oil sands, whereas certain Indian refineries have the capability to handle a wider range of crude grades. This dynamic suggests that India could supply refined fuels to Canada while sourcing raw energy materials from Canadian producers.
Bilateral relations between India and Canada have gained momentum following a series of high-level visits and trade discussions involving officials and business representatives from both nations. The CEPA negotiations, which began in March 2026, have already seen five rounds of talks completed by October.
The proposed agreement not only focuses on energy cooperation but also aims to significantly expand bilateral trade, targeting C$70 billion by 2030. In 2025, trade in goods and services between India and Canada reached C$30.4 billion, indicating substantial room for increased economic collaboration.