KARACHI/SINGAPORE – Pakistan’s largest oil refiner, Cnergyico, has finalized a deal to import 1 million barrels of US crude oil from global energy giant Vitol, marking the country’s first-ever purchase of American crude. The shipment, consisting of West Texas Intermediate (WTI) light crude, will be loaded from Houston this month and is expected to arrive at Karachi’s port by mid-October, company officials confirmed.
The deal follows months of negotiations that began in April 2025, shortly after US President Donald Trump threatened to impose 29% tariffs on Pakistani imports. Usama Qureshi, Vice Chairman of Cnergyico, stated that the Finance and Petroleum Ministries encouraged refiners to explore US crude as part of efforts to diversify supply sources. “This is a test cargo under our agreement with Vitol. If viable, we could import at least one shipment per month,” Qureshi said, clarifying that the oil is not for resale.
Pakistan currently relies almost entirely on Middle Eastern crude, with oil imports worth $11.3 billion in FY 2024-25—20% of its total import bill. The US crude deal could reduce this dependency while offering competitive refining margins. “WTI is on par with Gulf grades, and no refinery adjustments are needed,” Qureshi added. Cnergyico, which operates Pakistan’s only single-point mooring terminal, plans to expand capacity with a second offshore terminal and refinery upgrades in the next 5-6 years.
The oil deal follows a broader trade agreement between Pakistan and the US, which Islamabad says will lower tariffs and boost investment. President Trump also hinted at cooperating with Pakistan to develop its oil reserves, though details remain unclear. Analysts see this as a strategic realignment, with Pakistan balancing ties between China and the US while securing energy and economic benefits. Will this pave the way for more US energy exports to Pakistan? Stay tuned for updates!