Pakistan’s largest refiner Cnergyico will import 1 million barrels of oil from Vitol in October, its vice chairman Usama Qureshi informed Reuters on Friday (August 1, 2025), marking the nation’s first-ever buy of U.S. crude following a landmark commerce deal.
The West Texas Intermediate mild crude cargo will probably be loaded from Houston this month and is anticipated to arrive in Karachi within the second half of October, Mr. Qureshi mentioned.
“This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,” he mentioned, including that the shipment was not meant for resale.
The deal follows months of a number of negotiations which first started in April, he mentioned, after U.S. President Donald Trump threatened to impose 29% tariffs on imports from Pakistan.
Mr. Qureshi mentioned Pakistan’s finance and petroleum ministries inspired native refineries to discover U.S. crude imports after the April tariff announcement.
Vitol didn’t instantly reply to a request for remark despatched outdoors of workplace hours.
On Thursday, Pakistan hailed a commerce deal struck with the U.S., its prime export market. Pakistan mentioned the settlement would lead to decrease tariffs and elevated funding, with out specifying the extent of duties to be levied on Pakistani shipments.
Pak PM Sharif calls commerce deal with U.S. ‘historic’, thanks Trump
Pakistan’s Prime Minister Shehbaz Sharif thanked U.S. President Donald Trump for the “historic” commerce settlement reached between Islamabad and Washington, and expressed hope that it might increase cooperation between the 2 nations. Trump introduced that the U.S. has sealed a deal with Pakistan to work collectively on growing the South Asian nation’s “massive oil reserves”.
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A key China ally, Pakistan has been warming up to Mr. Trump after he threatened tariffs. It has credited U.S. diplomatic intervention for ending latest hostilities with neighbouring India and nominated Trump for the Nobel peace prize.
Oil is Pakistan’s greatest import merchandise and its shipments have been valued at $11.3 billion within the yr ended June 30, 2025, accounting for practically a fifth of the nation’s complete import invoice.
The import deal will assist Pakistan diversify its crude sourcing and scale back reliance on Middle Eastern suppliers, who account for practically all of its oil imports.
“Gross refining margin is on par with gulf grades, and no blending or refinery tweaks are required,” Mr. Qureshi mentioned.
Cnergyico can course of 156,000 barrels of crude per day and operates the nation’s solely single-point mooring terminal close to Karachi, enabling it to deal with massive tankers in contrast to different refiners in Pakistan.
The firm plans to set up a second offshore terminal to enable bigger or extra frequent shipments, and improve its refinery over the following 5 to six years, Mr. Qureshi mentioned.
The refiner, which has been working at a mean refinery run charge of 30-35% due to tepid native demand, is betting on development in demand for oil merchandise.
“We expect run rates to rise as domestic demand strengthens and local production is prioritised over imported fuels,” Mr. Qureshi mentioned.
Trump mentioned on Wednesday the U.S. would additionally cooperate with Pakistan to develop the South Asian nation’s “massive oil reserves”, with out offering additional particulars.
