Canada and India agree to boost energy trade

The two governments said Canada will seek to increase crude oil and natural gas exports to India while buying refined petroleum products in return, following ministerial meetings that cited energy security and supply diversity.

Canada and India announced plans to deepen energy trade after recent ministerial meetings. Energy and Natural Resources Minister Tim Hodgson met Indian Petroleum and Natural Gas Minister Hardeep Singh Puri as both sides raised energy security and diversity of supply. The initiative fits with Canadian aims to grow non-U.S. exports and with India’s efforts to diversify its energy sources. Diplomatic tensions between the countries remain part of the wider context. Key details: - Canada plans to increase exports of crude oil and liquefied natural gas (LNG) to Asian markets, and to expand liquefied petroleum gas (LPG) shipments via Canada’s west coast, with India identified as a key market. - Current Canada–India energy trade was valued at about $761.5 million in 2024, largely driven by $602 million in coal exports and $158 million in crude oil and bitumen, while Canada imported roughly $206 million in refined petroleum products from India. - About 97 percent of Canada’s energy exports currently go to the United States, and Prime Minister Mark Carney has pledged to double non-U.S. exports. - India is the world’s third-largest oil consumer, a major LNG importer, and in 2023–24 imported roughly 88 percent of the crude oil it consumed, with Russia accounting for a significant share though Russian supplies fell year over year. - Canada has discussed using the Trans Mountain Expansion (TMX) pipeline to reach Asian markets; talks on broader trade agreements have a long history and sectoral negotiations were underway before recent diplomatic strains. Summary: The announced plans reflect mutual interest in diversifying energy suppliers and markets and could expand Canada’s energy trade beyond its dominant U.S. market while giving India additional supply options. Undetermined at this time.