Canada and China Eye Expanded Trade in Oil, Gas and Uranium

Canada and China have agreed to strengthen energy cooperation, opening the door for increased Canadian exports of oil, natural gas and uranium to China. The agreement was signed during Prime Minister Mark Carney’s visit to Beijing, signalling a renewed push to deepen bilateral ties in the energy sector.
Under the memorandum of understanding, both countries acknowledged that conventional energy will continue to play a key role during the global energy transition. They agreed to enhance cooperation in oil and gas resource development, including trade in crude oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG).
The agreement comes as energy trade between the two countries has already been expanding. Chinese firms have begun receiving LNG from Canada’s first LNG export facility in 2025 and have significantly increased their purchases of Canadian oil over the past year.
The pact also highlights Canada’s potential as a reliable and responsibly produced supplier of global energy resources. Both sides agreed to explore mutually beneficial opportunities based on market principles, particularly in the supply of oil, LNG and LPG.
In addition to fossil fuels, the agreement promotes greater cooperation in uranium trade. Canada is one of the world’s leading uranium producers, with Saskatchewan playing a major role in global supply. The inclusion of uranium reflects China’s long-term interest in securing fuel for its nuclear energy expansion.
The energy cooperation deal builds on earlier agreements between the two countries and underscores a broader effort to expand economic engagement despite wider geopolitical tensions. Canadian officials said the agreement positions Canada as a key partner in meeting China’s growing energy needs while supporting global supply diversification.