Pakistan’s largest oil refiner, Cnergyico, is set to import one million barrels of crude oil from the United States (US) in October this year, marking the country’s first-ever purchase of American oil following a landmark trade agreement. The shipment will be supplied by global energy trader Vitol.

 

On Friday, Reuters quoted Cnergyico Vice Chairman Usama Qureshi as saying that a cargo of West Texas Intermediate (WTI) light crude will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October.

 

“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,” Qureshi stated, adding that Vitol has been a long-term trading partner of the company. 

 

The deal was reached after months of negotiations that began in April this year, following US President Donald Trump’s threat to impose a 29 percent tariff on Pakistani goods.

 

In response, Pakistan’s finance and petroleum ministries encouraged local refiners to diversify their sourcing and explore US-origin crude.

 

On Thursday, Pakistan praised a trade deal with the US, its top export market, and asserted that the agreement would boost investment.

 

According to an executive order detailing the tariffs, the US announced that Pakistan would face a 19 percent tariff on its exports.

 

Oil is Pakistan’s largest import item, with shipments valued at $11.3 billion in the fiscal year ending June 30, 2025, accounting for nearly one-fifth of the country’s total import bill.

 

“Gross refining margin is on par with Gulf grades, and no blending or refinery tweaks are required,” Qureshi said, adding Cnergyico could consider buying at least 1 million barrels of oil a month from the US after it evaluates the first shipment, given its current monthly demand stands at 4.6 million barrels.

 

“It aligns well with domestic market requirements. Demand typically strengthens in the October–November period,” he stated.

 

Cnergyico can process 156,000 barrels of crude per day and operates the country’s only single-point mooring terminal near Karachi, enabling it to handle large tankers, unlike other refiners in Pakistan.

 

According to Qureshi, the company plans to install a second offshore terminal to allow larger or more frequent shipments and to upgrade its refinery over the next five to six years

 

On Wednesday, President Trump said that the United States would also cooperate with Pakistan to develop the South Asian country’s “massive oil reserves”, though he did not provide further details.

 

Vitol is yet to respond to the development.