Pakistan opens door to U.S. crude with Cnergyico’s breakthrough import

August 1, 2025 (MLN): Pakistan’s largest oil refiner, Cnergyico, will import 1 million barrels of crude oil from global trader Vitol in October under a landmark deal marking the country’s first-ever purchase of U.S. crude.

The development was shared by Cnergyico Vice Chairman Usama Qureshi in a statement to Reuters on Friday.

The West Texas Intermediate (WTI) light crude cargo will be shipped from Houston this month and is expected to arrive at Karachi’s port in the latter half of October.

Qureshi explained that this is a trial spot cargo under a broader term agreement with Vitol. If the deal proves commercially feasible and supply remains consistent, Cnergyico may import at least one cargo per month. He clarified that the crude is intended strictly for domestic use and not for resale.

Negotiations for this deal began in April, shortly after former U.S. President Donald Trump shared plans to impose 29% tariffs on Pakistani imports, according to Reuters.

Pakistan’s finance and petroleum ministries subsequently encouraged local refiners to explore crude import options from the U.S.

Vitol has not yet responded to a request for comment submitted outside of regular business hours.

Pakistan reported a trade pact with the U.S., its largest export destination, which it expects will boost investment on Thursday.

Meanwhile, the White House revealed a revised 19% tariff on Pakistani imports, down from the initially proposed 29%.

Despite being a close ally of China, Pakistan has made overtures toward Trump, crediting U.S. diplomatic efforts for easing recent tensions with neighboring India. The country also nominated Trump for the Nobel Peace Prize.

Crude oil remains Pakistan’s most significant import, valued at $11.3 billion in the fiscal year ending June 30, 2025, accounting for nearly 20% of the nation’s total import bill.

The new deal is expected to help Pakistan diversify its crude sources, which have traditionally come almost entirely from the Middle East.

Qureshi noted that refining margins for U.S. grades are comparable to Gulf-sourced crude, and the imported oil requires no blending or technical adjustments at the refinery.

Cnergyico, which operates the nation’s only single-point mooring terminal near Karachi, can process up to 156,000 barrels per day and handle large tankers, unlike other local refiners as reported by Reuters.

Plans are underway to install a second offshore terminal to support larger or more frequent shipments. The company also aims to modernize its refinery operations over the next five to six years.

Currently, Cnergyico is operating at 30% to 35% capacity due to subdued domestic demand.

However, Qureshi expressed optimism that refining activity will rise as domestic consumption grows and preference is given to locally refined over imported fuels.

Trump indicated that the U.S. also plans to cooperate with Pakistan in developing the country’s “massive oil reserves,” though he offered no further specifics.

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