KARACHI – August 1, 2025:
In a significant step toward diversifying its energy supply, Pakistan is set to receive its first shipment of American crude oil later this year. The deal, struck between local refining giant Cnergyico and global commodities trader Vitol, marks the country’s maiden purchase of U.S.-origin crude.
Speaking to Reuters on Friday, Cnergyico Vice Chairman Usama Qureshi confirmed the agreement, revealing that one million barrels of West Texas Intermediate (WTI) crude will be shipped from Houston this month, with the cargo expected to dock in Karachi between mid and late October.
“This is a spot trial cargo under our umbrella agreement with Vitol,” Qureshi said. “If it proves commercially viable and available on a consistent basis, we may consider bringing in at least one shipment per month.”
He clarified that the incoming cargo is intended for domestic refining and will not be resold.
The development follows months of back-and-forth negotiations, which reportedly began in April after former U.S. President Donald Trump threatened to impose a steep 29% tariff on Pakistani imports. The announcement sparked a renewed diplomatic push from Islamabad, ultimately resulting in a broader trade agreement hailed by officials in both capitals.
As part of that agreement, Washington agreed to ease trade tensions by levying a reduced 19% tariff instead. The White House, in a statement on Thursday, said the deal would “encourage investment and cooperation,” especially in sectors like energy.
According to Qureshi, both Pakistan’s finance and petroleum ministries encouraged refiners to explore sourcing options beyond the Gulf after the initial tariff threat. With Middle Eastern suppliers currently dominating Pakistan’s crude imports, this American oil deal signals a deliberate shift in strategy.
“Our gross refining margins for WTI are comparable to Gulf grades,” Qureshi explained. “What’s more, our facility can process it without requiring any blending or modifications.”
Cnergyico, which operates Pakistan’s only single-point mooring terminal near Karachi, is uniquely positioned to handle such large imports. The company can refine up to 156,000 barrels per day and is now eyeing an expansion of its offshore terminal infrastructure to accommodate higher volumes in the future.
Qureshi also revealed that Cnergyico plans to upgrade its refinery over the next five to six years, as the company anticipates a gradual rebound in domestic fuel demand. Currently, the refinery is running at just 30–35% capacity amid subdued market activity.
“As local demand picks up and the government leans toward prioritizing locally refined fuel over imports, we expect our run rates to improve significantly,” he said.
In a surprising twist, Trump also hinted at broader energy cooperation between the U.S. and Pakistan, claiming Washington would support the development of Pakistan’s “massive untapped oil reserves”—though he did not offer specifics.
Pakistan spent over $11 billion on oil imports in the fiscal year ending June 30, 2025, with crude purchases accounting for nearly 20% of its total import bill. With economic pressure mounting, officials see this new channel as a way to not only save costs but also build strategic ties with Washington amid shifting global alliances.
