Pakistan inks first US oil import deal with Vitol, Cnergyico to bring 1M barrels in October
KARACHI – In a major breakthrough for Pakistan’s energy sector, local oil refiner Cnergyico has finalized a deal with Vitol to import 1 million barrels of U.S. crude, making it the first time Pakistan will receive American oil.
The cargo, comprising West Texas Intermediate (WTI) light crude, will be loaded in Houston this month and is expected to arrive at Karachi’s port in the second half of October, Cnergyico Vice Chairman Usama Qureshi told Reuters on Friday.
“This is a test cargo under a larger framework with Vitol. If all goes well, we plan to bring in one cargo each month,” said Qureshi, adding that the oil is strictly for domestic refining, not for resale.
The announcement follows a broader U.S.-Pakistan trade agreement reached this week, under which the U.S. reduced proposed tariffs from 29% to 19% and promised enhanced investment. Talks on oil imports began back in April amid rising geopolitical tensions and tariff threats from former President Donald Trump.
Pakistan’s ministries of finance and petroleum supported the move, seeing U.S. oil as a way to diversify supply sources. Currently, nearly all of Pakistan’s oil imports come from the Middle East.
Crude oil remains Pakistan’s top import item, with purchases totaling $11.3 billion in the last fiscal year — roughly 20% of the total import bill.
Qureshi said that the refining margin for U.S. crude is competitive with Gulf-sourced oil, and no technical changes are needed at the refinery. Cnergyico can process up to 156,000 barrels per day and owns the country’s only single-point mooring terminal, giving it a logistical edge over other local refiners.
The company plans to add a second offshore terminal and initiate a multi-year refinery upgrade to expand its capacity and optimize operations. Though currently operating at only 30–35% due to soft demand, Cnergyico expects higher throughput as local consumption picks up.
Additionally, Trump hinted this week at potential U.S. involvement in developing Pakistan’s untapped oil reserves, though no firm plans have been revealed.