India and Canada Forge Energy Partnership to Expand LNG and Oil Trade, Boost Clean Energy and Investment Cooperation
India and Canada signed a joint statement to strengthen strategic cooperation in the energy sector during India Energy Week 2026, held in Goa. The agreement marks the first high-level participation by a Canadian cabinet minister, Energy and Natural Resources Minister Timothy Hodgson, at the forum.
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| File Photo of Canadian PM Mark Carney; Via: Indian Tech and Infra |
The development follows directives from Indian Prime Minister Narendra Modi and Canadian Prime Minister during their meeting at the G7 Summit in Kananaskis, Canada, in June 2025. Both leaders had emphasized the need to restart senior ministerial and working-level engagements.
In a joint statement, India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri and his Canadian counterpart reaffirmed their countries’ complementary energy profiles.
Canada’s efforts to diversify energy exports, including LNG, crude oil, and LPG via the Trans Mountain Expansion (TMX) pipeline and western ports, align with India’s growing demand as the world’s third-largest oil consumer and fourth-largest LNG importer.
India is also among the top global consumers of LPG and operates the fourth-largest refining capacity globally.
The ministers affirmed plans to deepen bilateral energy trade, including Indian imports of Canadian LNG, LPG, and crude oil, and Canadian imports of refined petroleum products from India. Investment cooperation was also a key focus, with both governments committing to long-term commercial partnerships.
Canada’s recent acceleration of $116 billion in energy projects and India’s $500 billion investment opportunity in its energy sector form the backdrop to this strategic collaboration.
Clean energy and climate cooperation formed another cornerstone of the agreement. Both sides identified opportunities for joint work in carbon reduction technologies, renewable energy—including hydrogen, biofuels, and sustainable aviation fuel—battery storage, critical minerals, and AI applications in the energy sector.
The two ministers also reaffirmed their support for global mechanisms like the Global Biofuels Alliance (GBA), where Canada holds observer status.
India and Canada agreed to maintain consistent government-to-government dialogue through the Ministerial Energy Dialogue and ensure regular expert-level engagement. Both countries also encouraged enhanced business-to-business and business-to-government collaboration across the full energy value chain.
The joint statement emphasized that India and Canada can act as stable partners to ensure reliable, diverse, and secure global energy supply chains while pursuing climate goals through bilateral, multilateral, and industry-driven channels.
This strategic development comes close on the heels of another major milestone in India’s global trade diplomacy: the conclusion of the India–European Union Free Trade Agreement (FTA).
Announced during the 16th India–EU Summit, the FTA represents India’s largest trade deal to date, unlocking preferential access for over 99% of its exports to the EU and opening new opportunities across manufacturing, services, agriculture, and clean technology.
Together, these two developments reflect India’s expanding global economic and strategic footprint, reinforcing its position as a pivotal player in the global energy transition and as a trusted trade partner to key Western economies.