Exclusive: Pakistan to buy first-ever US oil cargo in Cnergyico deal with Vitol

Reuters

a day ago

KARACHI/SINGAPORE, Aug 1 (Reuters) - Pakistan's largest refiner Cnergyico (CNER.PSX), opens new tab will import 1 million barrels of oil from Vitol in October, Cnergyico's Vice Chairman Usama Qureshi said on Friday, the country's first-ever purchase of U.S. crude following a landmark trade deal.
The West Texas Intermediate light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, he said.
"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.
The deal follows months of negotiations that first began in April, he said, after U.S. President Donald Trump threatened to impose 29% tariffs on imports from Pakistan.
Qureshi said Pakistan's finance and petroleum ministries encouraged local refineries to explore U.S. crude imports after the April tariff announcement.
Vitol did not immediately respond to a request for comment sent outside of office hours.
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 U.S. would charge a 19% tariff on imports from Pakistan.
A key China ally, Pakistan has been wooing Trump after he threatened tariffs. It credited U.S. diplomatic intervention for ending recent hostilities with neighbouring India and nominated Trump for the Nobel Peace Prize.
Oil is Pakistan's biggest import item and its shipments were valued at $11.3 billion in the year ended June 30, 2025, 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.
"Gross refining margin is on par with Gulf grades, and no blending or refinery tweaks are required," Qureshi said.
Cnergyico could consider buying at least 1 million barrels of U.S. oil a month after it evaluates the first shipment, given its current monthly demand stands at 4.6 million barrels, he said.
"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.
The refiner, which has been operating at an average refinery run rate of 30% to 35% due to tepid local demand, is betting on growth in demand for oil products.
Trump said on Wednesday the U.S. would also cooperate with Pakistan to develop the South Asian country's "massive oil reserves", without providing further details.