KARACHI: Pakistan is set to import its first-ever cargo of U.S. crude oil, as Cnergyico — the country’s largest oil refiner — finalizes a landmark deal with global commodities trader Vitol. The 1 million-barrel shipment of West Texas Intermediate (WTI) light crude will depart from Houston this month and is scheduled to arrive in Karachi in the second half of October, Vice Chairman Usama Qureshi confirmed to Reuters on Friday.
“This is a trial spot cargo under our broader term agreement with Vitol,” Qureshi said. “If it proves commercially feasible and supply remains available, we could consider importing at least one cargo per month.” He added that the shipment is for domestic use only and not intended for resale.
The agreement is the result of several rounds of negotiations that began in April, following former U.S. President Donald Trump’s threat to impose 29% tariffs on Pakistani imports. In response, Pakistan’s finance and petroleum ministries encouraged local refineries to explore new crude sources, including the U.S.
While Vitol has yet to comment on the deal, Pakistan on Thursday hailed the broader trade agreement with the U.S. — its largest export market — as a step that will boost foreign investment. The White House, for its part, announced a revised 19% tariff on Pakistani imports.
Despite its strong strategic ties with China, Pakistan has moved to strengthen relations with Washington under Trump, even crediting U.S. diplomacy with helping ease tensions with neighboring India. Islamabad has gone as far as nominating Trump for the Nobel Peace Prize.
Crude oil remains Pakistan’s top import, totaling $11.3 billion in the fiscal year ending June 30, 2025 — nearly 20% of its total import bill. This new import route from the U.S. is expected to help diversify the country’s crude supply, reducing its heavy reliance on Middle Eastern producers.
Read Top Stories
“The gross refining margin of WTI is comparable to Gulf crude grades, and the shipment can be processed without any blending or refinery adjustments,” Qureshi noted.
Cnergyico operates Pakistan’s only single-point mooring terminal near Karachi, enabling it to handle larger tankers — a logistical advantage over other domestic refiners. The company, which currently runs at just 30%–35% capacity due to weak domestic demand, plans to install a second offshore terminal and upgrade its facilities over the next five to six years.
“With domestic demand expected to rebound and local production set to be prioritized over imports, we anticipate higher refinery utilization in the near future,” Qureshi added.
Trump also remarked on Wednesday that the U.S. is prepared to cooperate with Pakistan in developing its “massive oil reserves,” though he did not provide specific details.