Pakistan’s top oil refiner, Cnergyico (CNER.PSX), is set to import 1 million barrels of US crude in October, marking the country’s first-ever purchase of American oil, Vice Chairman Usama Qureshi told Reuters on Friday.
The shipment 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. Qureshi described the shipment as a trial cargo under a broader supply agreement with Vitol and noted that if it proves commercially viable, monthly imports may follow. He clarified the oil is for domestic refining, not resale.
This breakthrough comes after months of talks that began in April, following a warning from US President Donald Trump about potential 29% tariffs on Pakistani imports. In response, Pakistan’s finance and petroleum ministries encouraged local refineries to explore crude imports from the US.
While Vitol has not commented yet, the deal follows a broader trade agreement between Pakistan and the US, which Islamabad has welcomed. Under the agreement, the US will impose a 19% tariff on Pakistani goods—lower than the initial threat.
A long-time ally of China, Pakistan has recently sought closer ties with the US, even nominating Trump for a Nobel Peace Prize following US diplomatic efforts to ease tensions with India.
Oil is Pakistan’s largest import commodity, worth $11.3 billion in the year ending June 30, 2025—around 20% of the national import bill. The US crude import deal aims to diversify Pakistan’s supply sources, which are currently dominated by the Middle East.
Qureshi said the refining margin on US crude is comparable to Gulf grades and that no blending or technical adjustments are needed at the refinery. Cnergyico operates Pakistan’s only single-point mooring near Karachi and can refine up to 156,000 barrels per day.
Looking ahead, the company plans to build a second offshore terminal and upgrade its facilities over the next five to six years. Operating currently at 30–35% capacity due to weak demand, Cnergyico expects production to rise as domestic consumption increases and locally refined products are prioritized over imports.
Trump also recently announced that the US would assist Pakistan in tapping into its vast untapped oil reserves, although details remain undisclosed.
Read more: Pakistan and US Reach Breakthrough Tariff Deal to Safeguard Key Exports
