Page 52 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

India and Canada Signed Joint Statement on Energy Cooperation at India Energy Week 2026

At the invitation of the Hon’ble Minister of Petroleum and Natural Gas of India, H.E. Shri Hardeep Singh
Puri, the Hon’ble Minister of Energy and Natural Resources of Canada, H.E. Timothy Hodgson, participated
in India Energy Week 2026 (IEW’26) in Goa, marking the first high-level participation of a Canadian Cabinet
Minister at IEW. On the sidelines of the event, the two Ministers held a bilateral meeting and launched
the renewed India-Canada Ministerial Energy Dialogue. During this meeting, the Ministers affirmed the
immense importance that energy security and diversity of supply has in the safety, wellbeing, and
economic vitality of both countries.

This meeting is a follow up to the direction provided by the Prime Minister(s) of India and Canada during
their interaction on the sidelines of the G7 Summit, held in June 2025 in Kananaskis, Canada, wherein
both leaders underscored the importance of restarting senior ministerial, as well as working-level
engagements.

India’s Ministry of Petroleum and Natural Gas and Natural Resources Canada recognized the
complementary nature of their energy sectors, and the mutual value to be gained on sustained
engagement on energy matters. Canada has stated its goal of becoming an energy superpower in clean
and conventional energy, with export diversification as a priority while India, as the epicenter of global
energy landscape, offers a natural and symbiotic partnership grounded in scale, stability, and long-term
opportunity. Canada has current and emerging liquefied natural gas (LNG) projects, is increasing
production and exports of crude oil to markets in Asia via the Trans Mountain Expansion (TMX) Pipeline
and is advancing liquefied petroleum gas (LPG) exports to Asia via the west coast of Canada. At the same
time, India being the world’s third largest oil consumer, fourth largest LNG importer, third largest LPG
consumer, and having fourth largest refining capacity, is projected to remain at the center of the global
energy landscape, accounting for over one-third of the growth in global energy demand over the next two
decades, largest contribution by any country. Even efforts are underway in India to substantially scale up
domestic oil production, significantly expand refining capacity, increase use of natural gas in the energy
mix. Thus, India and Canada have significant potential to emerge strong collaborators in area of energy
fuels. In this context, the Ministers affirm to deepen bilateral energy trade including supply of Canadian
LNG, LPG, and crude oil to India, and supply of refined petroleum products from India to Canada.

The Ministers recognize the importance of joint commercial and investment partnerships in each other’s
energy sector. Canada is acting quickly to build energy projects and supply products to international
markets, with Asia as a priority region. In 2025, the Government of Canada launched the Major Projects
Office and announced the acceleration of several energy and resource projects and strategies,
representing more than $116 billion in investments. India is also investing heavily in its own energy supply
and prosperity. India highlighted the various policy reforms undertaken, including the huge investment
opportunity of US$ 500 billion in overall value chain of energy sector. Recognizing this, the Ministers
agreed to deepen long-term partnerships aimed at facilitating increased reciprocal investment in the
Indian and Canadian energy sectors.

The Ministers also recognized the importance of climate-related objectives. This includes efforts to reduce
emissions in conventional energy value chains, including through carbon capture utilization and storage,

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