Canada to supply LNG, LPG, crude; India to export refined fuels
NEW DELHI: Canada will supply liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil to India, while India will export refined petroleum products to Canada, according to the Canada–India Ministerial Energy Dialogue held on Tuesday.
The dialogue took place between India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, and Canada’s Minister of Energy and Natural Resources, Timothy Hodgson, on the sidelines of India Energy Week 2026 (IEW’26) in Goa.
“The Ministers affirm to deepen bilateral energy trade, including the supply of Canadian LNG, LPG, and crude oil to India, and the supply of refined petroleum products from India to Canada. Natural Resources Canada and India’s Ministry of Petroleum and Natural Gas recognized the complementary nature of their energy sectors and the mutual value to be gained from sustained engagement on energy matters,” the statement said.
Puri, while speaking to journalists, said that Canada has strengths across several energy sectors. He noted that apart from substantial crude oil reserves—often described as having around 100 years of reserves—Canada also has four Small Modular Reactors (SMRs). He added that discussions are already underway between Oil India, the nodal agency for critical minerals, and Canadian counterparts, reflecting a new and welcome level of cooperation.
At present, Canada does not export crude oil or LNG directly to India. India sources most of its oil from Russia, Iraq, and Saudi Arabia, and LNG mainly from Qatar, according to data from analytics firm Kpler.
Over the past three years, India’s oil imports rose by an average of 2.5 per cent, while LNG imports fell by 6.3 per cent in 2025, reflecting a shift back towards oil amid higher gas prices.
Canada has several current and upcoming LNG projects, is increasing crude oil exports to Asian markets through the Trans Mountain Expansion (TMX) pipeline, and is advancing LPG exports via its west coast.
At the same time, India—currently the world’s third-largest oil consumer, fourth-largest LNG importer, third-largest LPG consumer, and home to the fourth-largest refining capacity—is expected to remain central to the global energy landscape.
India is projected to account for over one-third of global energy demand growth over the next two decades. Efforts are also underway to boost domestic oil production, expand refining capacity, and increase the share of natural gas in the energy mix. These factors point to strong potential for India and Canada to collaborate in the energy fuels sector.
Meanwhile, the fourth edition of India Energy Week 2026 witnessed the signing of several memoranda of understanding (MoUs). These included two shipbuilding contracts involving ONGC, with Mitsui O S K Lines of Japan as ship owners and Samsung Heavy Industries of South Korea as the shipbuilder. One vessel is expected to be delivered in 2028 and the other in 2029.
BPCL and Petrobras also signed a term contract for crude oil, renewing supply arrangements for FY 2026–27. The contract covers 12 million barrels of Brazilian crude, valued at about USD 780 million, and aims to diversify India’s crude supply sources and strengthen energy security. In addition, Indian Oil Corporation (IOC) signed MoUs with ONGC, Petronet, and Oil India for the construction of eight to nine compressed biogas (CBG) plants. Separately, GAIL, K Line, and JM Bakshi Marine Services entered into a term sheet for equity participation in a shipping company.