Canada, India Pledge to Boost Oil, Petroleum Trade Ties

• Canada and India will expand oil, LNG and refined fuel trade
• Ministers will relaunch energy talks and deepen sector cooperation
• Part of Canada’s push to reduce reliance on the US and strengthen ties with India

Canada and India will establish stronger energy ties through their new agreement which aims to restore diplomatic relations after an extended period of diplomatic tension.

Canada will increase its deliveries of crude oil, liquefied natural gas and liquefied petroleum gas to India according to a new agreement which India will use to expand its petroleum product exports to Canada.

The commitments follow talks between Canadian Energy Minister Tim Hodgson and India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, according to a joint statement.

The ministers will meet on Tuesday at India Energy Week in Goa to officialy launch their ministerial energy dialogue again. The dialogue functioned as the main energy partnership platform between the two countries until it stopped operating because of a major conflict which started after a Canadian Sikh activist was killed.

Prime Minister Mark Carney uses the channel's revival as a component of his plan to establish new export markets that will reduce Canada's economic dependence on its current trade relations with the United States.

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The statement shows that both countries will start working together for economic benefits through their improved relationships with important Asian countries.

Hodgson and Puri will expand their trade activities while they make deals to develop each other's energy markets through their hydrogen and biofuel and battery storage and critical minerals and electricity systems and artificial intelligence energy projects.

The relaunch demonstrates that officials from both sides recognize the economic and strategic advantages which would come from increased energy cooperation. Carney will travel to India next month to advance his dialogue with Prime Minister Modi about creating their economic partnership agreement.

The total value of bilateral goods trade between the two countries reached C$13.3 billion during 2024, but Ottawa expects the energy sector to drive future trade expansion.

Canada currently exports only 1% of its critical minerals to India, which creates a major opportunity for Canada to increase its exports to Asian markets through its upcoming LNG capacity and pipeline expansions.