In a major development, Pakistan’s largest refinery, Cnergyico, has signed a historic deal to import crude oil from the United States for the first time. The company will bring in 1 million barrels of West Texas Intermediate (WTI) light crude from the global energy firm Vitol. According to Vice Chairman Usama Qureshi, the cargo will be loaded from Houston this month and is expected to arrive in Karachi by mid-October.
This agreement marks a significant step in diversifying Pakistan’s oil import sources, which are currently dominated by Middle Eastern suppliers. Qureshi explained that this is a test spot cargo under a broader agreement with Vitol, and if the oil proves commercially viable and available, Cnergyico plans to import at least one cargo every month. He emphasized that the shipment is strictly for in-house refining and will not be resold.
The deal followed months of negotiations that began in April, coinciding with former US President Donald Trump’s threat to impose 29% tariffs on Pakistani imports. In response, Pakistan’s Ministry of Petroleum and Ministry of Finance directed local refineries to start considering US oil imports. While Vitol has yet to officially comment, the move aligns with Pakistan’s broader aim to strengthen economic ties with the United States.
Meanwhile, Pakistan has praised the recent trade agreement with Washington, noting that the US remains its largest export market. On Thursday, the White House announced that a reduced tariff of 19% will now apply to Pakistani imports. Islamabad, which has also credited US diplomacy in easing tensions with India, recently nominated Trump for the Nobel Peace Prize.
Oil is Pakistan’s biggest import, valued at $11.3 billion in the fiscal year ending June 30, 2025—nearly one-fifth of the country’s total import bill. This deal is expected to ease pressure on Pakistan’s foreign exchange reserves by offering more flexible oil sourcing options. Cnergyico also confirmed that the refining margin for WTI oil is on par with Gulf oil grades and does not require changes in refinery settings or blending.
Currently, the refinery operates at 30% to 35% of its capacity due to weak domestic demand. However, the company remains optimistic that as local consumption increases and preference is given to domestic refining over imported fuel, utilization rates will improve. Plans are also underway to install a second offshore terminal in the next five to six years to manage larger shipments and upgrade refining capacity.