India Engages Canadian Firms for LPG Supply Amid West Asia Crisis

India is currently in advanced discussions with Canadian energy companies to secure liquefied petroleum gas (LPG) supplies, as disruptions in West Asia have triggered concerns over the availability of this essential cooking fuel. The talks come amid a growing demand for energy in India and the need to diversify supply sources.

According to a senior Indian official, discussions are ongoing with two Canadian firms, Calgary-based AltaGas and Pembina Pipeline, through state-owned Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd. There is a “realistic possibility” that the first shipments of Canadian LPG bound for India could depart from Vancouver port as early as next month, or by May at the latest.

The official described the negotiations as “immediate” and indicated that the focus is on establishing “offtake agreements” that could extend into long-term supply arrangements. “They are willing to enter into long-term agreements and create long-term supply chains,” the official added, highlighting the strategic nature of the engagement.

A spokesperson for AltaGas noted that the company has been actively promoting economic opportunities and positioning Canada as an exporter to Asia since 2019, supplying LPG to countries such as Japan, South Korea, and China via its west coast operations. However, the spokesperson clarified that AltaGas does not currently export LPG volumes to India but is exploring options for medium-term supply.

Energy cooperation has become a central pillar of the renewed India-Canada relationship. On March 10, Canadian Prime Minister Mark Carney tweeted that India’s energy demand is growing faster than anywhere else in the world and emphasized that Canada is well-positioned to meet this opportunity as an energy superpower.

A joint statement issued after a meeting between Prime Minister Narendra Modi and Carney in New Delhi highlighted ongoing discussions between Indian public sector oil and gas companies and Canadian firms to expand bilateral cooperation in LPG. The statement emphasized efforts to finalize India’s first long-term LPG supply agreement with Canada, noting that such partnerships would strengthen supply security, diversify energy trade, and create new opportunities across the hydrocarbon sector.

Canada’s Minister of Energy and Natural Resources, Tim Hodgson, who visited India in January, reinforced the strategic importance of engagement with India. During India Energy Week in Goa, Hodgson described this collaboration as “essential,” noting that India is a key partner in Canada’s ambition to enhance its position as a global energy supplier.

With the West Asia crisis accelerating supply concerns, these talks may soon lead to a tangible solution, ensuring uninterrupted LPG availability for Indian households.