As the conflict in West Asia disrupts India’s sourcing of fossil fuels such as petroleum and liquefied natural gas, Mark Carney has said that Canada is well-positioned to meet India’s future energy needs.
In a post on X on Tuesday, Carney noted that India’s energy demand is growing faster than anywhere else in the world. He said that Canada, as an energy powerhouse, is well placed to take advantage of this opportunity.
Carney also shared a video clip from his joint press appearance with Narendra Modi in New Delhi last week following their bilateral meeting. In the clip, he said Canada could contribute as a reliable supplier of responsibly produced and low carbon liquefied natural gas from its west coast.
However, the proposals being discussed are largely for the future because Canada does not yet have the infrastructure required to export oil and gas at levels significant enough for major consumers such as India. In fact, Canada’s first shipment of liquefied natural gas to Asia arrived only last year when a cargo reached South Korea in June.
Liquefied natural gas shipments are transported through the Coastal GasLink pipeline to the port of Kitimat in British Columbia, where the LNG Canada export facility currently has a capacity of 14 million tonnes per annum. The country’s west coast location also reduces tanker travel time to Asia to about ten days. Several new LNG projects, pipelines and port facilities are currently at different stages of development.
Canada’s ambition to become one of India’s major suppliers of oil and gas was also highlighted in the joint statement issued after the meeting between the two prime ministers earlier this month. The statement noted that Canada is expected to emerge as a major global supplier of liquefied natural gas and welcomed India’s intention to import LNG from the country. It also acknowledged that Canada has become an important supplier of heavy oil in recent years.
Both countries recognised the potential to expand bilateral energy trade further. This could include higher imports of oil and LNG by India from Canada as well as exports of refined petroleum products from India to Canada.
The two sides also noted ongoing discussions aimed at concluding India’s first long term agreement for the supply of liquefied petroleum gas from Canada.
Canada aims to increase its LNG exports to several million tonnes per year by 2030 and potentially double that level over a longer period.
Tim Hodgson visited India in January where he attended India Energy Week in Goa and held bilateral meetings with five Indian cabinet ministers.
After returning from the visit, Hodgson said strategic engagement with India is essential for Canada’s energy ambitions. He noted that in many ways Canada’s path to becoming an energy superpower runs through India.
Meanwhile, Hardeep Singh Puri is expected to visit Canada later this year to advance cooperation in the energy sector.
