Strengthening cooperation in oil and gas: India and Canada expand their trade

Representatives from Canada and India have initiated an energy dialogue and announced plans to expand mutual trade in gas and oil. Bloomberg reports on the intention of both parties to cooperate.

According to sources, Ottawa has agreed to increase the supply of oil, LNG, and liquefied petroleum gas (LPG) to India, while New Delhi is willing to expand exports of petroleum products to Canada. This mutual commitment is expected to be formally announced following a meeting between Canadian Energy Minister Tim Hodgson and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri at the India Energy Week international energy conference held in Goa.

Experts interpret this move as a signal of both countries' attempt to strengthen their strategic alliance in energy matters after several years of diplomatic cooling. Between 2024 and 2025, relations between Ottawa and New Delhi were tense, partly due to diplomatic disputes over incidents related to the diaspora and geopolitical differences. This delayed the development of trade initiatives.

Canadian government officials emphasize that the decision to increase exports to India is part of a broader strategy to diversify export markets. Relations with their main trading partner, the United States, remain under pressure due to trade tensions and the threat of new tariffs on Canadian products.

The Indian oil market has shown steady growth in energy demand in recent years. According to official data, the country is one of the largest oil importers in the world, and a significant portion of its imports comes from the Middle East and Russia. However, geopolitical pressure has prompted New Delhi to expand its energy alliances with various suppliers, including Canada.

$XRP