In a groundbreaking move for the country’s energy sector, Pakistan has finalized a historic agreement to import crude oil from the United States for the first time. The Pakistan U.S. oil deal, signed by Cnergyico, the country’s largest privately-owned refinery, marks a pivotal shift in its oil sourcing strategy, which has long relied on Middle Eastern suppliers.
The deal involves the import of 1 million barrels of West Texas Intermediate (WTI) light crude oil from global energy giant Vitol. According to Cnergyico Vice Chairman Usama Qureshi, the shipment will be loaded from Houston, Texas, and is expected to reach Karachi by mid-October.
This import is a “test spot cargo,” Qureshi said, under a broader agreement with Vitol. If proven commercially feasible and sustainable, Cnergyico plans to bring in at least one shipment every month. Importantly, the cargo is intended solely for in-house refining and will not be sold in secondary markets.
An important step in diversifying the nation’s energy imports is the oil contract between the United States and Pakistan. This action is intended to improve energy security and foster more competitive market dynamics in the face of rising global uncertainty and fluctuating oil prices.
Due to limited domestic demand, the Cnergyico refinery currently runs between 30% and 35% of its maximum capacity. Officials from the company, however, are hopeful that the market for domestically processed fuels will grow in the future. “We anticipate a significant increase in capacity utilization as preference shifts toward local refining over costly fuel imports,” Qureshi stated.
Additionally, the business has long-term infrastructure development as one of its goals. Within the next five to six years, plans are already in place to establish a second offshore port. This new terminal will enable Cnergyico to manage larger shipments and support future capacity upgrades to the Cnergyico refinery, thereby improving efficiency and production.
The Pakistan U.S. oil deal is also expected to positively influence the country’s balance of payments by gradually reducing dependency on imported refined fuel. In the broader context, this agreement demonstrates a strategic pivot by Pakistan to forge energy alliances beyond the Gulf region.
Energy analysts have praised the deal, calling it a “milestone in Pakistan’s refining and import strategy.” It not only opens doors to one of the world’s most stable crude suppliers but also signals confidence in Pakistan’s refining capabilities.
As the first shipment makes its way from Houston to Karachi, all eyes are on how this strategic move will shape the future of oil imports and domestic refining in Pakistan. If successful, this could set a precedent for long-term partnerships and further investments in the energy infrastructure.
