Karachi: Cnergyico Pk Limited (CPL), Pakistan’s largest oil refinery, announced on Wednesday that it has ratified a Head of Terms Agreement with Asia Petroleum Limited (APL) to utilise APL’s 14-inch pipeline system for a proposed 20-year term.
The company disclosed the development in a notice submitted to the Pakistan Stock Exchange (PSX). According to the filing, the agreement will allow CPL to transport high-speed diesel (HSD) from its refineries to the Zulfiqarabad Oil Terminal. From there, the product will connect onward to the White Oil Pipeline (WOP) system and storage terminals at Port Qasim.
Moreover, the agreement defines the commercial and regulatory framework for pipeline-based transportation. However, the parties will execute definitive agreements only after meeting specified conditions, including securing required governmental and regulatory approvals and completing physical connectivity.
Cnergyico stated that the proposed arrangement will significantly reduce reliance on road transportation. Consequently, the shift will help minimise road congestion and lower accident risks linked to fuel transport by tanker trucks.
In addition, the company expects the pipeline connectivity to strengthen supply chain reliability by enabling direct refinery-to-terminal transfers and improved access to the WOP network.
Cnergyico operates as a vertically integrated energy company across oil refining and marketing. It owns and runs a crude oil terminal, the country’s largest oil refinery by nameplate capacity, and the biggest crude oil storage tanks in Pakistan. The company also manages a nationwide network of petrol pumps.
Incorporated in 1995 as a public limited company, Cnergyico previously operated under the name Byco Petroleum Pakistan Limited.
