India's energy demands are soaring, and the country is seeking more Canadian fuel supplies to meet its needs. However, regulatory hurdles and a lack of infrastructure to transport fuels to market in India are complicating these plans, according to Dinesh Patnaik, India's High Commissioner to Canada. This presents an opportunity for Canada's oil and gas sector, as India's energy consumption is expected to skyrocket over the next 25 years, with half of the world's increased demand for oil coming from India. India imports roughly 90% of its oil and gas, with the lion's share coming from the Middle East. This has left India scrambling since the beginning of the war in Iran, and the country is now looking for "unhindered supplies from jurisdictions which are safe, reliable, and which do not change with geopolitical risks." Canada has the resources that India needs, but the country's regulatory framework and lack of infrastructure are hindering its ability to get fossil fuels directly to India. This is a complaint made often by Alberta's oil sector, and the driving force behind the province's push for a new pipeline to the West Coast. India wants to forge long-term agreements with Canada for many reasons, including the scale of Canada's natural resources, its reliability as a supplier, and its democratic government. However, Canada's past tendency toward sluggish project approvals means investors remain somewhat skeptical. India's energy demands present an opportunity for Canada, but the country must address its regulatory hurdles and lack of infrastructure to transport fuels to market in India. This will require regular discussions with the government and a more open economy to large, private sector energy investments. The future of Canada's energy exports to India is uncertain, but with the right approach, Canada can help meet India's future energy demands and strengthen its relationship with this important trading partner.
