Energy lifeline: Country offers India massive LNG, oil and uranium deal amid crisis
A major energy deal is on the cards as Canada offers India LNG, oil and uranium to tackle the ongoing gas crisis. The offer comes as India faces shortage of gases amid ongoing Iran Israel tension
New Delhi (The Uttam Hindu): The fierce war between Iran and Israel-US has created a stir in the global energy market. Following the disruption of gas supplies from Qatar, India is also facing a shortage of LPG and natural gas. At this critical juncture, some relief news has emerged for India. "Energy superpower" Canada has proposed opening its LNG and critical mineral reserves to meet India's growing energy needs.
The Qatar crisis and Canada's masterstroke
The war in West Asia has completely disrupted the supply chain from Qatar, leading to a sharp surge in gas prices. On Wednesday, Canadian Prime Minister Mark Carney shared a video with Prime Minister Modi, assuring India of a reliable partnership. Carney said that Canada is capable of supplying the world's lowest carbon emission and safest liquefied natural gas (LNG), which will prove to be a game-changer for India's heating, power generation, and industrial needs.
India's energy demand will double by 2040
According to Canadian Prime Minister Mark Carney, India's energy demand is projected to nearly double by 2040. He explained that India aims to increase its renewable energy capacity to 500 gigawatts by the end of this decade and double the share of LNG in its total energy mix. "Canada can be a strategic partner in this journey, supporting India in clean technology and nuclear energy," Carney said.
Uranium and critical minerals also offered
Not just gas, Canada has also offered uranium and other critical minerals for India's manufacturing sector. Approximately 40 percent of the world's mining companies are listed in Canada. Recently, India also indicated its readiness to purchase any energy resources from Canada, such as crude oil, LPG, and uranium, provided approval processes are simplified.
Diversification of import sources
India's Petroleum Minister Hardeep Singh Puri has made it clear that the country will no longer rely solely on West Asia for its energy security. India is diversifying its import sources. The government has taken war-like steps to ensure that fuel supplies to households and vital sectors of the country remain uninterrupted. This new Canadian proposal is being considered a major safeguard for India in this time of crisis.