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India in advanced talks with Canadian firms to procure LPG
The companies mentioned, Calgary-based AltaGas and Pembina Pipeline, are in discussions with state-owned Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd
Toronto: India is in advanced discussions with Canadian companies to procure liquefied petroleum gas (LPG) as the crisis in West Asia creates a crunch in the supply of the cooking fuel.
Discussions are in progress with two Canadian companies and there is the realistic possibility that the first shipments of Canadian LPG bound for India leave next month, or May, at the latest, from Vancouver port, a senior Indian official told the Hindustan Times.
The official described the talks as “immediate” and that they were looking at “offtake agreements”.
The companies mentioned, Calgary-based AltaGas and Pembina Pipeline, are in discussions with state-owned Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd.
“They are willing to do long-term agreements and create long-term supply chains,” the official said.
Responding to queries from the Hindustan Times, a spokesperson for AltaGas said the company “has been driving economic opportunities and helping position Canada as an exporter to Asia since 2019, currently exporting Canadian-produced LPG to Japan, South Korea and China off the west coast”.
“While we are actively assessing options to supply LPG to India in the medium-term, AltaGas does not currently supply any volumes to India,” the spokesperson added.
Energy is among the central sectors to the renewed relationship. On March 10, in a post on X, Canadian Prime Minister Mark Carney said, “India’s energy demand is increasing faster than anywhere else in the world. As an energy superpower, Canada is well-positioned to seize this opportunity.”
Hydrocarbon products, from oil to LNG, LPG and refined petroleum, were mentioned in the joint statement issued after Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney met in New Delhi earlier this month. “The leaders welcomed discussions between Indian public sector oil and gas companies and Canadian energy firms to expand bilateral cooperation in liquefied petroleum gas (LPG). They noted ongoing engagement aimed at concluding India’s first long-term LPG supply arrangement with Canada and expressed confidence that such partnerships will further diversify energy trade, strengthen supply security, and create new opportunities for collaboration across the hydrocarbon value chain,” the statement added.
The crisis may have accelerated that timeline.
Canada’s Minister of Energy and Natural Resources Tim Hodgson completed a visit to India in January, during which he attended India Energy Week in Goa and held bilaterals with as many as five Cabinet Ministers.
During the course of a press conference after his return, Hodgson said strategic engagement with India was “not optional” but “essential”, adding, “The path to being an energy superpower runs through India in many ways for Canada.”
