Web Desk
Pakistan’s largest oil refinery, Cnergyico, will import 1 million barrels of crude oil from Vitol in October, marking the country’s first-ever purchase of U.S. crude, according to Vice Chairman Usama Qureshi, as reported by British news agency Reuters.
The West Texas Intermediate (WTI) light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Qureshi said.
“This is a test spot cargo under our umbrella term agreement with Vitol. If it proves commercially viable and remains available, we could import at least one cargo per month,” he added, noting that the shipment is not intended for resale.
The agreement follows several months of negotiations that began in April, Qureshi said, shortly after U.S. President Donald Trump threatened to impose a 29% tariff on imports from Pakistan.
On Thursday, Pakistan welcomed the trade deal with the U.S.—its largest export market—and said it would help attract foreign investment. Meanwhile, the White House announced it would impose a 19% tariff on imports from Pakistan.
Qureshi said that following the initial tariff announcement, Pakistan’s finance and petroleum ministries encouraged local refineries to explore options for importing U.S. crude. Vitol did not immediately respond to a request for comment sent outside business hours.
A key ally of China, Pakistan has recently sought closer ties with the Trump administration, crediting U.S. diplomatic efforts with helping de-escalate recent tensions with neighboring India. Pakistan even nominated President Trump for the Nobel Peace Prize in recognition of his role, Qureshi noted.
Oil is Pakistan’s largest import item, with shipments valued at $11.3 billion in the fiscal year ending June 30, 2025—accounting for nearly 20% of the country’s total import bill.
The import of U.S. crude is expected to help Pakistan diversify its oil sources and reduce dependence on Middle Eastern suppliers, which currently account for nearly all of the country’s crude imports.
“Gross refining margins are on par with Gulf grades, and no blending or refinery modifications are required,” Qureshi explained.
Cnergyico, which operates the country’s only Single Point Mooring (SPM) terminal near Karachi, can process 156,000 barrels of crude per day. This infrastructure allows it to accommodate larger tankers—an advantage over other local refineries.
The company plans to install a second offshore terminal to allow for larger and more frequent shipments, and to upgrade its existing refinery over the next five to six years, Qureshi said.
Despite currently operating at a refinery run rate of 30–35% due to weak local demand, Cnergyico is optimistic about a rebound in consumption.
“We expect run rates to rise as domestic demand improves and locally refined products are prioritized over imports,” Qureshi said.
President Trump also stated on Wednesday that the U.S. would cooperate with Pakistan to develop the country’s “massive oil reserves”, though he did not provide further details.
