India is in advanced talks with Canadian companies to procure liquefied petroleum gas (LPG) due to the crisis in West Asia, which has created a crunch in the supply of the cooking fuel.
Discussions are ongoing with two Canadian companies, AltaGas and Pembina Pipeline, and there is a possibility that the first shipments of Canadian LPG bound for India could leave next month or May at the latest from Vancouver port.
The talks are described as 'immediate' and are focused on 'offtake agreements' between the companies and state-owned Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd.
The Canadian companies are willing to do long-term agreements and create long-term supply chains, according to a senior Indian official.
Energy is a key sector in the renewed relationship between India and Canada, with Canadian Prime Minister Mark Carney saying that India's energy demand is increasing faster than anywhere else in the world.
Hydrocarbon products, including oil, 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.
