Pakistan’s largest refiner Cnergyico to increase US crude imports amid Gulf supply risks

Pakistan’s largest oil refiner, Cnergyico, is increasing its purchases of US crude as the country seeks to diversify energy supplies after disruptions caused by the Iran war exposed its dependence on Gulf shipping routes.

Cnergyico first purchased US crude last year and has since imported around 8.1 million barrels over a nine-month period, including 7.1 million barrels worth approximately $750 million during the fiscal year that ended in June, Vice Chairman Usama Qureshi told Reuters.

The company is also considering spot purchases alongside longer-term contracts with suppliers including Vitol, depending on pricing, reliability and supply security.

Pakistan is seeking greater imports from the United States partly to narrow its trade surplus with Washington and secure reductions in tariffs imposed by US President Donald Trump.

US imports rise

Pakistan’s payments for US imports increased by $914 million to $3.27 billion during the last fiscal year, according to central bank data. Cnergyico’s purchases accounted for around 80% of that increase.

Qureshi said the company could further increase its US crude purchases if Pakistan’s proposed EXIM Bank trade-finance facility is extended to the refiner.

Islamabad proposed the facility last month to enable Pakistani buyers to defer payments to US exporters for up to three years.

Pakistan traditionally imports most of its oil from Saudi Arabia and the United Arab Emirates, while around 90% of the country’s oil and LNG imports previously passed through the Strait of Hormuz.

The disruption to regional energy supplies has increased pressure on Islamabad to find alternative routes and suppliers. Pakistan has also explored alternatives such as importing Saudi crude through Yanbu on the Red Sea coast.

Cnergyico plans $1.2bn upgrade

Cnergyico is also evaluating the construction of a second offshore mooring connected to its storage network, allowing it to import and export refined petroleum products using large tankers outside Karachi’s congested ports.

The proposal forms part of a $1.2 billion upgrade aimed at meeting Euro V fuel standards, reducing furnace-oil production and increasing the refinery’s capacity to around 200,000 barrels per day.

Fawad Basir, head of research at KTrade Securities, said disruptions in the Middle East had highlighted the risks of relying heavily on a single supply route.

He said using Very Large Crude Carriers to transport US crude could reduce freight costs by around 25% to 30%, while a second Single Point Mooring could improve vessel turnaround times.