Canada and India are set to expand cooperation in oil and gas trade as both countries work to reset bilateral ties following a period of diplomatic strain. The renewed engagement focuses on boosting energy commerce and rebuilding structured dialogue between the two governments.
According to a joint statement cited by Bloomberg News, Canada will increase supplies of crude oil, liquefied natural gas and liquefied petroleum gas to India. In return, India will send larger volumes of refined petroleum products to Canada. The commitment follows discussions between Canadian Energy Minister Tim Hodgson and India’s Petroleum and Natural Gas Minister Hardeep Singh Puri.
The two ministers are scheduled to meet on the sidelines of India Energy Week in Goa. During the event, both sides plan to relaunch a ministerial energy dialogue that once served as the main platform for bilateral energy cooperation. The mechanism had remained inactive for several years amid tensions triggered by a dispute related to the killing of a Canadian Sikh activist.
Officials said the renewed push forms part of a broader strategy under Canadian Prime Minister Mark Carney to diversify Canada’s export destinations. With trade frictions rising between Canada and the United States, Ottawa is seeking to reduce reliance on its largest trading partner. The move also signals a shift toward pragmatic and economy focused diplomacy with key Asian economies.
Beyond trade in hydrocarbons, the two ministers are expected to commit to encouraging greater two way investment in each other’s energy sectors. The statement said both countries will explore cooperation in emerging and strategic areas including hydrogen, biofuels, battery storage, critical minerals and electricity systems. Collaboration in the use of artificial intelligence within the energy industry is also on the agenda.
Officials described the relaunch of the dialogue as an acknowledgment that the energy relationship between Canada and India holds significant untapped potential. They said both governments see strategic value in strengthening ties that had previously stalled despite strong complementarities between Canadian resources and Indian demand.
Carney is expected to visit India in the coming weeks as part of the broader reset in relations. He and Indian Prime Minister Narendra Modi resumed discussions in November on advancing a comprehensive economic partnership agreement. These talks are seen as a framework for expanding cooperation across trade and investment beyond energy.
Two way trade in goods between Canada and India reached 13.3 billion Canadian dollars in 2024. Canadian officials believe there is substantial room for growth, particularly in energy and critical minerals. India currently accounts for only about one percent of Canada’s critical minerals exports. Ottawa has said this highlights the scale of opportunity as India seeks secure supplies for its energy transition and industrial growth.
Canada began exporting liquefied natural gas to Asian markets in June 2025. Its LPG terminals also offer relatively shorter shipping routes to India compared to other suppliers. In addition, the expansion of the Trans Mountain pipeline has created a more direct route for Canadian crude to reach Asian destinations including India. However, a significant share of Canadian oil shipments to India still transit through the United States Gulf Coast.
Carney’s expected visit to India will follow his recent trip to Beijing. During that visit, he and Chinese President Xi Jinping agreed to work toward reducing tariff barriers. That move prompted criticism from US President Donald Trump, who warned of steep tariffs on Canadian goods if Ottawa deepened trade ties with China. Carney later clarified that Canada is not pursuing a free trade agreement with China and remains focused on balanced economic engagement.
Officials in Ottawa said expanding energy ties with India fits into Canada’s broader goal of building resilient trade relationships. For India, the renewed partnership offers diversification of energy sources and deeper engagement with a major resource rich economy. Both sides said the reset reflects a shared interest in long term cooperation grounded in economic priorities.