Canada Offers Oil and LNG to India Amid Gulf Conflict

Canada has proposed supplying oil and liquefied natural gas (LNG) to India as the Gulf conflict threatens global energy flows through the Strait of Hormuz.


Canadian Prime Minister Mark Carney highlighted Canada’s ability to serve as a reliable long-term energy partner during recent discussions.

India’s energy demand is projected to double by 2040, with plans to add 500 gigawatts of renewable capacity and expand LNG’s share in the energy mix. Canada believes it can support this transition through “low-carbon, responsibly produced LNG” exports from its western coastline, alongside petroleum and critical minerals for clean technology.

The Gulf conflict has disrupted traditional supply routes, raising concerns over India’s reliance on Hormuz, which carries nearly 20 per cent of global oil shipments. Policymakers in New Delhi are accelerating diversification efforts to reduce strategic vulnerability.

India is also weighing other options, including a 30-day waiver from Washington allowing refiners to purchase stranded Russian oil shipments. Discussions with Canada additionally covered cooperation on nuclear fuel and critical minerals, including a $2.5 billion uranium supply agreement to support India’s nuclear expansion.

For Canada, deeper energy ties with India could open a major long-term export market. Officials said the talks signal the beginning of a broader strategic energy partnership, positioning Canada as a key player in India’s energy future.

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