India and Canada are advancing their negotiations on a Comprehensive Economic Partnership Agreement (CEPA) as they explore enhanced energy cooperation. The potential partnership aims to establish a two-way energy supply chain, with India importing Canadian crude oil and natural gas while exporting refined petroleum products to Canada.
Canadian trade representatives are set to visit New Delhi early next month for the sixth round of negotiations, with both countries targeting a final agreement before Indian Prime Minister Narendra Modi’s scheduled visit to Canada on December 11–12. The discussions have been ongoing since March 2026, with five rounds of talks completed by October.
The proposed energy cooperation could focus on several areas, including crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. Canada, being a major energy producer, and India, one of the largest consumers of crude oil and natural gas with an extensive refining industry, stand to benefit from their complementary energy needs.
India’s refineries are technically capable of processing a broader range of crude grades, which could address the limitations faced by some Canadian refineries in handling heavy crude from Alberta’s oil sands. This synergy allows India to potentially supply refined fuels to Canada while sourcing raw energy resources from Canadian producers.
Bilateral relations between India and Canada have gained momentum following several high-level visits and trade discussions involving officials and business leaders from both countries. The CEPA aims to expand bilateral trade to C$70 billion by 2030, building on the trade in goods and services, which reached C$30.4 billion in 2025. This highlights the scope for increased economic cooperation between the two nations.