Canada targets India for increased energy exports, analysts say

Energy Minister Tim Hodgson said Canada aims to boost energy exports to India to diversify away from the United States, and analysts noted India’s growing fuel demand, large refining sector and opportunities for products beyond crude.

Canada is planning to increase energy exports to India, Energy Minister Tim Hodgson told the India Energy Week conference in Goa. He said the move is meant to diversify Canada's customer base and reduce dependence on the United States, calling the current concentration of exports to the U.S. a "strategic blunder." Analysts cited India’s large population, rapid economic growth and substantial refining capacity as reasons the country is a logical market for more Canadian fuel exports. They also pointed to opportunities for products beyond crude oil, such as naphtha, ethane and liquefied natural gas. Key facts: - Tim Hodgson announced Canada is looking to boost energy exports to India to diversify away from the U.S., and noted that about 98 per cent of Canadian energy currently goes to the United States. - Canada currently sells roughly 150,000 barrels a day of crude to India, a small share of the country’s overall exports to that market. - India’s refining sector processes about six million barrels a day of crude, and analysts said this supports demand for crude and petrochemical feedstocks. - Analysts named by the article — Susan Bell of Rystad Energy and Rory Johnston of Commodity Context — flagged opportunities for naphtha, ethane and LNG; India imports about 5 per cent of global LNG supply. - The article reports that a pipeline to a deepwater port able to handle Very Large Crude Carriers would make direct shipments from Canadian shores more feasible than current routing via the U.S. Gulf Coast. Summary: Analysts and officials say targeting India could diversify Canadian energy markets as global demand patterns shift toward South Asia. The article notes infrastructure changes, such as pipeline and port capacity, would affect how Canadian crude is shipped, and it reports ongoing trade efforts including a likely visit by a Canadian official to India in March. Undetermined at this time.