Canada And India Reset Energy Ties With Trade Push

29 Jan 2026 CW Team

According to a joint statement, Canada will commit to supplying more crude oil, liquefied natural gas and liquefied petroleum gas to India, while India will increase exports of refined petroleum products to Canada. The announcement followed a meeting between Canadian Energy Minister Tim Hodgson and India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri during India Energy Week in Goa.

Hodgson said Canada sees significant opportunities to deepen collaboration with India and highlighted ongoing efforts to expand pipeline infrastructure to the West Coast to support greater exports. The ministers also agreed to relaunch a ministerial energy dialogue, which had remained dormant after diplomatic tensions in recent years.

The renewed push reflects Canada’s broader strategy to diversify export markets amid rising trade frictions with the United States and to strengthen economic engagement with major Asian partners. Canada has historically directed the bulk of its energy exports to a single market, and the government now aims to broaden its global footprint.

Both sides also committed to facilitating reciprocal investment in their energy sectors and exploring cooperation in emerging areas such as hydrogen, biofuels, battery storage, critical minerals, electricity systems and the application of artificial intelligence in the energy industry.

The revival of the energy dialogue signals that both governments recognise untapped potential and strategic value in closer cooperation. Canada’s Prime Minister Mark Carney is expected to visit India in the coming weeks as part of the diplomatic reset, following the restart of talks towards a comprehensive economic partnership agreement between the two countries.

Two-way goods trade between Canada and India reached C$13.3 billion in 2024, with significant scope for further expansion, particularly in energy. India currently accounts for only a small share of Canada’s critical minerals exports, highlighting opportunities for deeper integration. Canada’s recent launch of LNG exports to Asia and the expansion of the Trans Mountain pipeline are expected to further support increased energy shipments to India.

Overall, the renewed engagement underscores a strategic shift towards pragmatic, economy-focused diplomacy and stronger energy ties between Canada and India.

Canada and India are set to expand bilateral trade in oil and gas as the two countries move to reset their relationship following a period of diplomatic strain. The renewed engagement focuses on strengthening energy cooperation and diversifying trade flows between the two economies. According to a joint statement, Canada will commit to supplying more crude oil, liquefied natural gas and liquefied petroleum gas to India, while India will increase exports of refined petroleum products to Canada. The announcement followed a meeting between Canadian Energy Minister Tim Hodgson and India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri during India Energy Week in Goa. Hodgson said Canada sees significant opportunities to deepen collaboration with India and highlighted ongoing efforts to expand pipeline infrastructure to the West Coast to support greater exports. The ministers also agreed to relaunch a ministerial energy dialogue, which had remained dormant after diplomatic tensions in recent years. The renewed push reflects Canada’s broader strategy to diversify export markets amid rising trade frictions with the United States and to strengthen economic engagement with major Asian partners. Canada has historically directed the bulk of its energy exports to a single market, and the government now aims to broaden its global footprint. Both sides also committed to facilitating reciprocal investment in their energy sectors and exploring cooperation in emerging areas such as hydrogen, biofuels, battery storage, critical minerals, electricity systems and the application of artificial intelligence in the energy industry. The revival of the energy dialogue signals that both governments recognise untapped potential and strategic value in closer cooperation. Canada’s Prime Minister Mark Carney is expected to visit India in the coming weeks as part of the diplomatic reset, following the restart of talks towards a comprehensive economic partnership agreement between the two countries. Two-way goods trade between Canada and India reached C$13.3 billion in 2024, with significant scope for further expansion, particularly in energy. India currently accounts for only a small share of Canada’s critical minerals exports, highlighting opportunities for deeper integration. Canada’s recent launch of LNG exports to Asia and the expansion of the Trans Mountain pipeline are expected to further support increased energy shipments to India. Overall, the renewed engagement underscores a strategic shift towards pragmatic, economy-focused diplomacy and stronger energy ties between Canada and India.

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