Canada is actively pursuing opportunities to enhance energy exports to India, aiming to broaden its market reach and reduce its reliance on the United States, according to Energy Minister Tim Hodgson. Speaking at the Indian Energy Week conference, Hodgson described the current situation of exporting 98 per cent of the country’s energy to a single market as a “strategic blunder,” highlighting the potential for collaboration with India, which is experiencing rapid energy demand growth.
Strategic Shift in Energy Exports
Hodgson emphasised that Canada is well-positioned to supply a variety of energy resources, including crude oil, liquefied natural gas (LNG), and uranium, to the burgeoning Indian market. Currently, Canada does not export crude oil or LNG to India, which has predominantly relied on countries such as Russia, Iraq, and Saudi Arabia for crude imports, and Qatar for its LNG needs, as reported by analytics firm Kpler.
In light of India’s increasing energy requirements, Hodgson noted, “The fastest growing demand for energy in the world will be in India.” This perspective aligns with the global trend of diversifying energy sources and reducing dependency on traditional markets.
Developing Infrastructure to Support Exports
Canada is making significant investments to enhance its energy infrastructure, including the construction of new pipelines. Hodgson pointed out that there are already three pipelines operational on the West Coast, with plans for additional developments. This infrastructure improvement is crucial for facilitating the transportation of energy resources to new markets, particularly as Canada aims to establish a foothold in India.
India’s recent initiatives to expand its nuclear energy generation also present an opportunity for Canada to bolster its uranium exports. Hodgson remarked on the country’s commitment to diversifying its energy supply, stating, “We see the opportunity to work with India,” further reinforcing Canada’s strategic shift in energy policy.
An Evolving Energy Landscape
The dynamics of global energy markets are evolving, and with India’s oil imports increasing by an average of 2.5 per cent over the last three years, the need for reliable energy sources has never been more critical. However, the data from Kpler also indicated a decline in LNG imports into India by 6.3 per cent in 2025, highlighting the challenges and opportunities that lie ahead.
As Canada seeks to establish itself as a competitive energy supplier to India, the country must navigate the complexities of international energy trade and the geopolitical landscape. Hodgson’s comments reflect a growing awareness of the need for strategic diversification in energy exports.
Why it Matters
This initiative to engage India as a key energy partner is not merely a business opportunity; it represents a significant shift in Canada’s energy policy and strategy. By reducing reliance on the U.S. market, Canada can enhance its energy security, create new economic opportunities, and play a pivotal role in meeting global energy demands. As both countries work towards a more interconnected energy future, this partnership could pave the way for sustainable growth and innovation in the energy sector.
