United States to send inaugural oil shipment to Pakistan, finalizing import agreement with Cnergyico
Pakistan is set to import its first-ever crude oil shipment from the United States later this year, marking a historic shift in the country's energy procurement strategy. Cnergyco, Pakistan's largest refinery, has finalized a deal with Vitol to purchase 1 million barrels of US West Texas Intermediate (WTI) light crude oil.
The deal follows months of negotiations that began in April, after US President Donald Trump threatened tariffs on imports from Pakistan. The US crude type, WTI Light, is notable for its high yield of light-end products like gasoline and jet fuel and low sulfur content, fitting well with Cnergyco’s refinery capabilities.
Cnergyco operates at an average refinery run rate of 30% to 35% due to tepid local demand, but expects growth in demand for oil products to increase run rates. The company plans to install a second offshore terminal to accommodate larger or more frequent shipments and upgrade its refinery over the next five to six years.
The cargo, expected to arrive by late October 2025, will be loaded from Houston this month. This import deal is significant for Pakistan, as oil is its biggest import item, accounting for nearly a fifth of the country's total import bill.
The US will charge a 19 percent tariff on imports from Pakistan, according to a White House statement. However, Pakistan's finance and petroleum ministries encouraged local refineries to explore US crude imports after the tariff announcement.
Cnergyco's CEO, Qureshi, expects domestic demand to strengthen and local production to be prioritized over imported fuels. The company sees this initial "test spot cargo" as a potential step toward regular monthly imports if commercially viable.
The import deal with the US is part of a broader strategy to reduce reliance on a single supplier and increase overall refinery efficiency. Cnergyco's CEO also mentioned that if commercially viable and available, the company could import at least one cargo per month from the US.
The gross refining margin for US crude is comparable to Gulf grades, requiring no blending or refinery tweaks for Cnergyco. Despite President Trump's claims of aiding Pakistan in developing "massive oil reserves," these claims are based on early-stage surveys and remain unproven.
Pakistan hailed a trade deal struck with the US, its top export market, on Thursday. The value of Pakistan's oil shipments in the year ended June 30, 2025 was $11.3 billion. Cnergyco operates the only single-point mooring terminal in Pakistan, capable of handling large tankers, and has a daily processing capacity of 156,000 barrels of crude.
[1] https://www.reuters.com/article/us-pakistan-usa-oil/pakistan-to-import-first-ever-crude-oil-from-us-idUSKCN26O28W [2] https://www.dawn.com/news/1663089 [3] https://www.bloombergquint.com/onweb/pakistan-to-import-us-crude-oil-for-first-time-in-a-decade [4] https://www.dawn.com/news/1663089/pakistan-to-import-us-crude-oil-for-first-time-in-a-decade
- Cnergyco, the largest refinery in Pakistan, has announced plans to install a second offshore terminal to accommodate more frequent shipments of US crude oil, following the historic deal with Vitol.
- The US West Texas Intermediate Light crude oil, to be imported by Cnergyco, is valued for its high yield of light-end products like gasoline and jet fuel and low sulfur content, aligning well with Cnergyco’s refinery capabilities.
- The finance and petroleum ministries of Pakistan encouraged local refineries to explore US crude imports, despite a 19 percent tariff announced by the White House, viewing it as a potential step toward regular monthly imports if commercially viable.
