With China controlling the majority of current supplies, concentrated supply chains pose high geopolitical risks.
India is keen on investing in extraction of critical minerals in Canada and will mount a delegation soon to discuss joint collaboration in the sector, Oil Minister Hardeep Singh Puri said Tuesday.
Talking to reporters after meeting visiting Canadian Minister of Energy and Natural Resources Tim Hodgson on the sidelines of India Energy Week here, Puri said the two sides agreed to deepen bilateral energy trade, including supply of Canadian LNG, LPG, and crude oil to India, and supply of refined petroleum products from India to Canada.
“Canada has critical minerals… they also have four small modular reactors (SMRs) — areas we are interested in,” he said.
State-owned Oil India Ltd (OIL) under his ministry is part of a consortia that is looking at securing critical minerals like lithium, cobalt and rare earth elements that are essential for manufacturing electric vehicle (EV) batteries, solar panels, wind turbines, and defence equipment.
With China controlling the majority of current supplies, concentrated supply chains pose high geopolitical risks.
OIL Chairman and Managing Director Ranjit Rath said a delegation will soon visit Canada to explore avenues for investing in extraction of critical minerals.
A joint statement issued after the meeting between Puri and Hodgson said the two affirmed the immense importance of energy security and diversity of supply.
“Canada has stated its goal of becoming an energy superpower in clean and conventional energy, with export diversification as a priority while India, as the epicentre of the global energy landscape, offers a natural and symbiotic partnership grounded in scale, stability, and long-term opportunity,” it said.
Canada has current and emerging liquefied natural gas (LNG) projects, is increasing production and exports of crude oil to markets in Asia and is advancing liquefied petroleum gas (LPG) exports to Asia. India being the world’s third largest oil consumer, fourth largest LNG importer, third largest LPG consumer, and having fourth largest refining capacity, is projected to remain at the centre of the global energy landscape, accounting for over one-third of the growth in global energy demand over the next two decades.
Puri said Indian companies may look at getting a toe-hold in the planned LNG export terminals to help secure energy supplies.
“The ministers recognise the importance of joint commercial and investment partnerships in each other’s energy sector. Canada is acting quickly to build energy projects and supply products to international markets, with Asia as a priority region,” the joint statement said.
“The ministers agreed to deepen long-term partnerships aimed at facilitating increased reciprocal investment in the Indian and Canadian energy sectors.” Also, there exists a huge potential for cooperation in clean energy value chains, and opportunities for collaboration in renewable energy, including hydrogen, biofuels and sustainable aviation fuel; battery storage; critical minerals; clean technologies; electricity systems; energy supply chain resilience, and the application of artificial intelligence in the energy sector, it said.
“India, as a major consumer and Canada as a safe, secure and reliable supplier, can act in partnership to deepen trade and ensure stable and secure energy supplies. India and Canada will collaborate to promote and strengthen cooperation across trade in the energy sector, including services,” it said.
