Canada and India move to restore energy ties with expanded oil and gas trade

January 27, 2026

RED FM News Desk

Canada and India are set to deepen cooperation in the energy sector as both countries work to reset relations following a period of diplomatic strain.

Under the renewed engagement, Canada will increase exports of crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG) to India. In return, India plans to ship greater volumes of refined petroleum products to Canada. The commitments were outlined in a joint statement reviewed by Bloomberg News after talks between Canadian Energy Minister Tim Hodgson and India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri.

The two ministers are scheduled to meet Tuesday at India Energy Week in Goa, where they will formally revive a “ministerial energy dialogue.” This forum was once the cornerstone of bilateral energy cooperation but had been inactive since relations soured over a high-profile dispute involving the killing of a Canadian Sikh activist.

The renewed focus on energy trade aligns with Prime Minister Mark Carney’s broader strategy to reduce Canada’s reliance on the U.S. by expanding exports to other global markets, particularly in Asia. It also underscores a shift by his government toward a more practical, economy-driven approach to foreign relations with key partners.