Pakistan’s Cnergyico will import 1 million barrels of U.S. crude oil in October from Vitol

In a landmark development for Pakistan’s energy sector, the country is set to receive its first-ever shipment of US crude oil this October, following a fresh trade agreement with Washington. 

The deal, sealed by Cnergyico, Pakistan’s largest oil refiner, involves the import of 1 million barrels of West Texas Intermediate (WTI) light crude from global energy trader Vitol. The cargo, loaded from Houston later this month, is expected to arrive in Karachi in the second half of October. 

“This is a test spot cargo under our umbrella term agreement with Vitol,” said Usama Qureshi, Vice Chairman of Cnergyico, in an interview with Reuters.

“If it proves commercially viable, we could glance at importing at least one cargo every month.” The vice chairman clarified that the shipment was strictly for domestic use and not resale. 

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Strategic Shift in Energy Sourcing 

The agreement comes on the heels of months-long negotiations that began in April, after US President Donald Trump threatened to impose 29% tariffs on Pakistani imports. Pakistan later struck a trade deal with Washington, which now sets tariffs at 19% instead. 

Encouraged by Pakistan’s finance and petroleum ministries, local refineries have started exploring the option of sourcing crude from the US to diversify supply lines. Until now, Pakistan has heavily depended almost entirely on Middle Eastern suppliers for its oil imports, valued at $11.3 billion in the fiscal year ending June 2025 — nearly one-fifth of the national import bill. 

Refinery Readiness and Expansion 

Qureshi noted that Cnergyico’s refining margins on US crude are comparable to Gulf grades. It needs no special blending or technical adjustments. The refinery is capable of processing 156,000 barrels per day, also operates Pakistan’s only single-point mooring terminal near Karachi, enabling it to handle large tankers efficiently. 

Looking ahead, the company plans to build a second offshore terminal and upgrade its refinery over the next five to six years to meet rising demand. “We expect run rates to rise as domestic demand strengthens and local production is prioritized over imports,” Qureshi said. 

The move indicates not just an energy milestone, but also a diplomatic signal of warming US-Pakistan ties, as Trump has even hinted at future cooperation to develop Pakistan’s “massive oil reserves.”