India and Canada are advancing discussions on a Comprehensive Economic Partnership Agreement (CEPA) with a keen focus on energy cooperation, which could lead to a robust two-way energy supply chain between the two nations. As part of this potential partnership, India aims to import Canadian crude oil and natural gas while exporting refined petroleum products back to Canada.
Negotiators from Canada are scheduled to visit New Delhi early next month for the sixth round of CEPA talks. Both countries are working towards finalizing the agreement before Indian Prime Minister Narendra Modi’s planned visit to Canada on December 11–12. This agreement could significantly expand bilateral trade, which reached C$30.4 billion in 2025, with the goal of hitting C$70 billion by 2030.
The collaboration is set to focus on several key areas, including crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. The synergy arises from Canada’s status as a major energy producer and India’s vast consumption and refining capabilities. Canadian refineries, which face challenges with processing heavy crude from Alberta’s oil sands, could benefit from India’s ability to refine a wider variety of crude grades.
This potential agreement builds on the momentum of improved bilateral relations, propelled by high-level visits and trade discussions between officials and business leaders from both countries. Talks on the CEPA initially began in March 2026, with five negotiation rounds completed by October.
The proposed energy cooperation highlights the complementary needs of India and Canada, with both sides poised to benefit from easier access to each other’s energy resources and products. By establishing a sustainable energy trade route, the two nations aim to strengthen their economic ties and enhance energy security.