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In a historic move, Pakistan is set to receive its first shipment of U.S. crude oil, as the country’s largest refiner, Cnergyico, finalizes a deal to import 1 million barrels from global energy trader Vitol.
The cargo of West Texas Intermediate (WTI) light crude will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Cnergyico Vice Chairman Usama Qureshi told Reuters.
“This is a test spot cargo under our umbrella term agreement with Vitol,” Qureshi said. “If commercially viable, we may import at least one cargo per month.”
This shipment, meant for domestic use only, follows months of behind-the-scenes negotiations that began in April after U.S. President Donald Trump threatened a 29% tariff on Pakistani imports. Encouraged by Pakistan’s finance and petroleum ministries, local refineries began exploring U.S. crude as a diversification strategy.
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The deal coincides with a broader trade agreement between Pakistan and the U.S., announced Thursday. While the U.S. has since settled on a 19% tariff, Pakistani officials hailed the deal as a diplomatic breakthrough, crediting American intervention for easing regional tensions and even nominating Trump for a Nobel Peace Prize.
Oil remains Pakistan’s top import, worth $11.3 billion in the fiscal year ending June 30, 2025 nearly 20% of the total import bill. Traditionally, nearly all of Pakistan’s crude is sourced from Middle Eastern suppliers. The U.S. shipment could mark the start of a new diversification strategy.
Qureshi said the refining margin on U.S. crude is on par with Gulf oil, with no need for blending or technical modifications. Cnergyico, capable of refining 156,000 barrels per day, is uniquely positioned for such imports, thanks to its single-point mooring terminal near Karachi the only one in the country able to accommodate large tankers.
Looking ahead, the company plans to install a second offshore terminal and upgrade its refinery over the next five to six years. Although operating at just 30%–35% capacity due to weak local demand, Cnergyico is optimistic.
“We expect run rates to rise as domestic demand strengthens and local production is prioritized over imported fuels,” Qureshi said.
Trump added that the U.S. would also cooperate with Pakistan to help develop its own oil reserves, though no further details have been shared.
