Cnergyico to Import First-Ever US-Origin Oil Under Strategic Energy Agreement
ISLAMABAD – In a significant shift in its energy trade policy, Pakistan has finalized its first-ever crude oil import agreement with the United States. The deal was struck between Cnergyico (CNER.PSX) — Pakistan’s largest oil refiner — and Vitol, a global energy and commodities trading firm, under a broader trade framework between Islamabad and Washington.
As part of the agreement, Cnergyico will import 1 million barrels of West Texas Intermediate (WTI) light crude in October, marking the first US-origin oil cargo to reach Pakistani shores. The shipment is expected to dock in Karachi during the second half of the month, Cnergyico Vice Chairman Usama Qureshi confirmed on Friday.
“This is a test spot cargo under a broader umbrella term agreement with Vitol,” Qureshi told Reuters. “If commercially viable, we may look to bring in at least one cargo per month.”
The landmark deal is not just about crude imports; it also includes plans for joint exploration and development of domestic oil reserves, aimed at boosting Pakistan’s long-term energy security.
Energy Diversification and Broader Economic Goals
The move comes after months of negotiations that reportedly began in April 2025, when then-US President Donald Trump warned of steep tariff hikes on Pakistani exports. Those tariffs were later reduced — from a proposed 29% to 19% — following diplomatic dialogue. The easing of trade tensions also coincided with White House efforts to calm regional disputes, including those between Pakistan and India.
Following the developments, Pakistan’s finance and petroleum ministries advised local refiners to diversify their supply sources, encouraging them to consider US-origin crude. The country has historically relied almost entirely on Middle Eastern oil suppliers.
“This deal enables us to reduce reliance on Gulf oil while maintaining our refining margins,” Qureshi noted, adding that no refinery modifications or blending will be required for WTI processing.
Cnergyico operates a 156,000 barrels-per-day (bpd) refinery and Pakistan’s only single-point mooring terminal near Karachi. The company plans to expand infrastructure, including a second offshore terminal and refinery upgrades over the next 5–6 years to accommodate higher or more diverse imports.
Currently, the refinery is operating at 30–35% capacity due to sluggish domestic demand. However, officials expect a consumption rebound in October and November, traditionally high-demand months.
US-Pakistan Trade Relations Enter ‘New Era’
Officials from both countries have hailed the agreement as part of a “new era of economic cooperation.” Under the broader trade pact, Pakistani goods will benefit from reduced tariffs and improved access to US markets, covering sectors like IT, minerals, and cryptocurrency alongside energy.
In the fiscal year ending June 30, 2025, Pakistan’s oil imports were valued at $11.3 billion, accounting for nearly 20% of the total import bill.
Earlier this week, President Trump reaffirmed US interest in supporting Pakistan’s energy ambitions, stating that Washington would help Islamabad develop its “massive oil reserves.” Though details remain scarce, the statement was met with optimism in Islamabad, which has since nominated Trump for the Nobel Peace Prize, citing his efforts in regional conflict de-escalation.
The Cnergyico-Vitol deal signals a strategic pivot in Pakistan’s energy sourcing — one that may reshape its economic and geopolitical trajectory in the years ahead.
