Pakistan all set to import first-ever US crude oil cargo

KARACHI/SINGAPORE: Pakistan is set to receive its first-ever crude oil cargo from the United States. The country’s largest refiner, Cnergyico, finalised a purchase deal with global energy trader Vitol, which according to the company’s Vice Chairman Usama Qureshi, will now lead to one million-barrel shipment in October.

 The cargo, consisting of West Texas Intermediate (WTI) light crude, will be shipped from Houston later this month and is expected to dock in Karachi in the latter half of October.

“This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,” Qureshi told Reuters, adding that Vitol was its long-term trading partner.

Negotiations for this deal began in April, shortly after former US President Donald Trump warned of imposing 29 per cent tariffs on Pakistani imports. In response, Pakistan’s ministries of finance and petroleum urged domestic refiners to consider sourcing oil from the US.

On Thursday, Pakistan hailed a trade deal struck with the United States, its top export market, and said the agreement would increase investments. The White House said on Thursday the US would charge a 19 per cent tariff on imports from Pakistan.

Oil is Pakistan’s biggest import item and in FY2025, its shipments were valued at $11.3 billion, accounting for nearly a fifth of the country’s total import bill.

The import deal will help Pakistan diversify its crude sourcing and reduce reliance on Middle Eastern suppliers, which account for nearly all of its oil imports.

If the initial cargo proves viable, Cnergyico is open to buying up to 1 million barrels of US oil monthly, considering its total monthly consumption is around 4.6 million barrels.

“It aligns well with domestic market requirements. Demand typically strengthens in the October–November period,” Qureshi said.

Cnergyico can process 156,000 barrels of crude per day and operates the country’s only single-point mooring terminal near Karachi, enabling it to handle large tankers unlike other refiners in Pakistan.

The company plans to install a second offshore terminal to allow larger or more frequent shipments, and to upgrade its refinery over the next five to six years, Qureshi said.

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