Canada, India agree to expand oil, LNG trade in renewed energy push

CALGARY — Canada and India have pledged to deepen trade in oil and gas as the two countries are set to renew relations, according to a joint statement between Natural Resources Canada and the Ministry of Petroleum and Natural Gas of India.The new commitment will see Canada expand shipments of crude oil, liquefied natural gas (LNG) and liquefied petroleum gas to India, while that country agrees to send more refined petroleum products to Canada.The announcement comes after a bilateral meeting between Canadian Energy and Natural Resources Minister Tim Hodgson and India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, at India Energy Week in Goa on Tuesday.“This meeting is a follow-up to the direction provided by the Prime Ministers of India and Canada during their interaction on the sidelines of the G7 Summit, held in June 2025 in Kananaskis, Canada, wherein both leaders underscored the importance of restarting senior ministerial, as well as working-level engagements,” the statement reads.The renewed push on energy cooperation between the two countries is set to be one of Prime Minister Mark Carney’s most significant efforts to diversify Canada’s export markets at a time of rising trade uncertainty with the United States.Carney is expected to travel to India in the coming weeks and meet with Indian Prime Minister Narendra Modi.In the statement, Hodgson and Puri emphasized the importance of energy security and supply diversity for both economies and highlighted what they described as the “complementary nature” of the two countries’ energy sectors..Japan looking to Western Canada LNG to reduce geopolitical energy risks in 2026.Trade between Canada and India hit $13.3 billion in 2024, and Ottawa sees far more room to grow — especially in the energy sector.India currently accounts for only 1% of Canada’s critical minerals exports, a gap the government says underscores the scale of the opportunity.Canada began exporting LNG to Asia as of June 2025 due to the opening of the LNG Canada facility at Kitimat, BC, and the facility’s terminals have relatively short shipping routes to India.The expansion of the Trans Mountain pipeline has also opened a path for crude shipments to India.India, is the world’s third-largest oil consumer, fourth-largest LNG importer and third-largest LPG consumer, with the fourth-largest refining capacity globally.The country is expected to account for more than one-third of global energy demand growth over the next two decades — more than any other nation.Hodgson and his Indian counterpart also committed to facilitating greater reciprocal investment in each other’s energy sectors and agreed to explore collaboration across clean energy technologies such as artificial intelligence in the energy sector, biofuels, carbon capture, critical minerals, electricity systems, and hydrogen.“Canada, as a safe, secure, and reliable supplier, and India, as a major consumer, can act in partnership to deepen trade and ensure stable and secure energy supplies,” the statement reads.

Canada, India agree to expand oil, LNG trade in renewed energy push

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