ISLAMABAD – Pakistan is set to receive its first-ever shipment of crude oil from the United States this October, as part of a landmark deal between the country’s largest refinery, Cnergyico, and global energy trader Vitol.
Vice Chairman of Cnergyico, Usama Qureshi, told Reuters that a cargo of 1 million barrels of West Texas Intermediate (WTI) light crude will be loaded from Houston this month and is expected to reach Karachi in the latter half of October.
“This is a test spot cargo under our umbrella term agreement with Vitol. If commercially viable, we could look at importing at least one cargo per month,” Qureshi stated, clarifying that the shipment is intended solely for local use and not resale.
This breakthrough follows months of negotiations that began in April, shortly after former U.S. President Donald Trump threatened to impose steep 29% tariffs on imports from Pakistan. In response, Pakistan’s petroleum and finance ministries encouraged local refineries to explore U.S. crude sourcing.
The import aligns with a broader trade agreement announced Thursday, in which the U.S. committed to lowering tariffs to 19% and increasing investment opportunities in Pakistan. Islamabad hailed the pact as a step forward in bilateral ties.
Pakistan, traditionally reliant on Middle Eastern oil, imported $11.3 billion worth of petroleum products in the fiscal year ending June 30, 2025. The shift to U.S. crude is expected to diversify energy sourcing and reduce dependency on Gulf suppliers.
Qureshi noted that Cnergyico’s refining margins for U.S. crude are comparable to Gulf grades, requiring no changes to refining processes. The company operates Pakistan’s only single-point mooring terminal near Karachi and processes up to 156,000 barrels per day.
Looking ahead, Cnergyico aims to install a second offshore terminal and upgrade its refinery over the next five to six years to expand capacity. While it currently operates at 30-35% due to sluggish demand, Qureshi expressed optimism for higher run rates as domestic consumption grows.
Meanwhile, Trump has hinted at U.S. cooperation in developing Pakistan’s untapped oil reserves, though no specific details have been disclosed.
