India Signals Strong Demand for Canadian Oil, Gas and Uranium Ahead of Carney Visit

Canada’s vast energy reserves are drawing renewed attention from India, one of the world’s fastest-growing major economies. As Prime Minister Mark Carney travels to India to deepen trade ties, Indian officials say they are ready to significantly increase imports of Canadian oil, natural gas and uranium — potentially reshaping a relationship that has faced political strain in recent years.

India Seeks Reliable Energy Supplies From Canada

India’s High Commissioner to Canada, Dinesh Patnaik, says his country’s energy demand is so large that Canada could become a major supplier across multiple sectors.

“On energy, there is an appetite which even Canada cannot fulfill and we are willing to buy whatever Canada is offering on crude, on LPG, on LNG,” Patnaik said in an interview before Carney’s departure.

India, home to more than 1.4 billion people, has limited domestic energy resources and depends heavily on imports. Its rapid industrialization, expanding middle class and urbanization are pushing consumption sharply higher.

Carney’s five-day visit is focused heavily on expanding trade and launching negotiations toward a comprehensive economic agreement — part of Canada’s broader effort to diversify exports beyond its traditional reliance on the United States.

Patnaik said increased energy co-operation could redefine bilateral relations, which have been strained since former prime minister Justin Trudeau alleged Indian government involvement in the 2023 killing of a Sikh separatist in British Columbia — an allegation India denies.

Saskatchewan Uranium a Key Opportunity

One of India’s top priorities is securing more Canadian uranium to power its growing nuclear sector.

India currently operates 25 nuclear reactors and is building eight more. It aims to increase nuclear capacity dramatically to 100 gigawatts by 2047, up from about 8.7 gigawatts today.

Canada, and Saskatchewan in particular, is well positioned to benefit. The province is the world’s second-largest uranium producer and home to major operations run by Cameco.

“We are willing to take whatever,” Patnaik said, noting Indian companies are also interested in investing directly in Canadian uranium projects. “Nuclear is a huge field in which we want to work together.”

Saskatchewan Premier Scott Moe, who met Indian officials in Mumbai, said a uranium supply agreement could be a major economic boost for the province while supporting global efforts to reduce emissions.

“As Canadians, we have a responsibility to provide and displace some of the dirtier forms of energy,” Moe said.

A potential decade-long uranium deal reportedly worth about $3 billion US is under discussion.

Canada’s Oil Export Challenge and Diversification Push

India is also interested in buying more Canadian crude oil, particularly as it seeks to diversify suppliers amid global geopolitical tensions.

Historically, Canada has struggled to supply overseas markets due to pipeline constraints. According to the Canadian Energy Regulator, about 93 per cent of Canada’s crude exports went to the United States in 2024.

This dependence has long been seen as a vulnerability for Canadian producers, who often receive discounted prices compared to global benchmarks.

Patnaik welcomed Canadian efforts to expand export infrastructure, including support for a proposed pipeline to Canada’s Pacific coast. Such projects could allow more direct shipments to Asia, shortening supply routes to India.

“You’re an energy superpower but you only supply one country,” he said. “We would be your biggest client — I think that is possible in the near future.”

Currently, much of the Canadian oil India purchases travels through U.S. refineries before being exported, adding costs and complexity.

LNG Exports Could Support India’s Energy Transition

Natural gas is another major opportunity. India is aiming to increase the share of gas in its energy mix to 15 per cent by 2030, up from just over six per cent today, as it attempts to reduce coal use and lower emissions.

Canada is developing several liquefied natural gas export terminals, particularly on British Columbia’s coast, positioning the country to become a significant supplier.

India is already the world’s fourth-largest LNG importer and is actively seeking new long-term supply agreements.

Canadian Natural Resources Minister Tim Hodgson said expanding energy exports to India aligns with Canada’s broader economic strategy.

“The prime minister has said he would like us to double our trade with India by the end of the decade,” Hodgson said, adding he was struck by the positive reception Canadian officials received during recent visits.

Economic and Strategic Benefits for Canada

Experts say strengthening energy ties with India could provide significant economic benefits for Canada, particularly at a time of uncertainty in its largest export market.

Senator Peter Boehm, chair of the Senate’s foreign affairs and international trade committee, said Canada has a clear opportunity to expand into new markets.

“India needs a lot of energy. There’s a lot — a lot — of potential there,” Boehm said.

Expanding trade with India could also support jobs in Western Canada’s energy sector and increase government revenues.

Conclusion: A Turning Point in Canada-India Energy Relations

India’s growing appetite for energy presents a significant opportunity for Canada to diversify its exports and strengthen its global economic position. With political relations stabilizing and trade talks advancing, energy — from uranium mined in Saskatchewan to LNG shipped from British Columbia — could become the cornerstone of a renewed Canada-India partnership.

If agreements materialize, Canada could secure a major long-term customer while helping fuel one of the world’s fastest-growing economies.