Cnergyico secures 4.8 million barrels of crude via routes bypassing Strait of Hormuz

Pakistan’s largest refinery operator — Cnergyico Pk Limited — has secured crude oil supplies through alternative routes to import about 4.8 million barrels of crude and will not route cargoes through the Strait of Hormuz until at least May 2026, a senior company official said.

“No Cnergyico Pk Limited (CPL) cargo is scheduled to transit through the Strait of Hormuz until May 2026,” Usama Qureshi, vice chairman of the company, said on Thursday.

According to Qureshi, the refinery has already secured around 2 million barrels of crude for March deliveries, about 1.8 million barrels for April and roughly 1 million barrels till first decade of May 2026. All cargoes will be sourced through routes that bypass the Strait of Hormuz, he said.

A different strategy

The company has adjusted its crude procurement strategy in recent months, increasing purchases of West African grades and U.S. crude linked to West Texas Intermediate benchmarks.

“We have shifted our crude slate toward U.S. and West African grades over the past several months, partly to move toward lighter and sweeter crude and partly to mitigate potential risks associated with instability in the Middle East and the possibility of disruption to shipping through the Strait of Hormuz,” Qureshi said.

The shift highlights growing concerns among regional crude buyers over the security of supply routes through the Strait of Hormuz, one of the world’s most critical oil transit chokepoints for seaborne crude flows.

Pakistan has sought an alternative oil supply route through Saudi Arabia’s Red Sea port of Yanbu Port as the closure of the Strait of Hormuz continues to disrupt fuel shipments, the Ministry of Petroleum said in a statement on Wednesday.

Petroleum Minister Ali Pervaiz Malik said the request was made during a meeting with Saudi Ambassador Nawaf bin Saeed Al-Malki, who assured Riyadh’s full support.

Malik said Saudi authorities have guaranteed the security of supplies routed through Yanbu and confirmed that a vessel would be dispatched from Pakistan to lift crude oil from the Red Sea port.

Most of Pakistan’s petroleum imports traditionally pass through the Strait of Hormuz, a strategic waterway now closed to traffic, underscoring the urgency of securing alternative supply lines, the minister said.

He added that the government was making all-out efforts to ensure uninterrupted energy supplies.

Pakistan’s overall imports of crude oil in the seven months ended Jan. 31rose 16.9% to 6.763 million mt while petroleum product imports rose 7.7% to 6.629 million mt compared with 6.154 million mt of the same period last year, according to the Pakistan Bureau of Statistics.