Islamabad (TDI): Pakistan is poised to receive its first-ever shipment of American crude oil, a milestone following a recently concluded trade agreement with the United States. The delivery, scheduled for October, will be managed by Cnergyico, the country’s largest oil refiner.
According to Usama Qureshi, Vice Chairman of Cnergyico, the company is importing 1 million barrels of West Texas Intermediate (WTI) light crude from Vitol, a global energy and commodity trading company. The oil will be shipped from Houston later this month and is expected to dock in Karachi during the second half of October, Reuters reported.
“This is a trial cargo under our broad-term agreement with Vitol,” Qureshi said. “If it proves commercially feasible and supplies remain accessible, we could look at importing one shipment per month.” He emphasized that the cargo is strictly for domestic refining, not resale.
The breakthrough comes after months of behind-the-scenes negotiations, initiated back in April, shortly after US President Donald Trump signaled plans to impose 29% tariffs on imports from Pakistan. In response, Pakistan’s finance and petroleum ministries began encouraging local refiners to explore American crude as an alternative.
Read More: Pakistan, US Reach a Win-Win Trade Deal
Islamabad has attributed recent diplomatic calm with India to Washington’s behind-the-scenes involvement and has even gone as far as nominating Donald Trump for the Nobel Peace Prize.
For Pakistan, oil remains the largest import sector, totaling $11.3 billion in the fiscal year ending June 2025. Nearly all of the country’s current oil imports come from the Middle East. This new deal marks a significant diversification of suppliers, and potentially a shift in long-term energy strategy.
Qureshi said the refining economics are comparable to Gulf crude grades and require no changes or blending at the refinery level, making it an attractive alternative.
Read More: Pakistan, US in Talks on Preferential Trade Agreement
Cnergyico operates a 156,000-barrel-per-day facility and controls Pakistan’s only offshore mooring terminal near Karachi, allowing it to receive larger crude oil vessels that many other local refiners cannot accommodate. Plans are also in motion to construct a second terminal and implement upgrades across the refinery in the coming five to six years.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
