Pakistan’s Cnergyico approves diesel pipeline deal with Asia Petroleum

A Pakistani petroleum refinery, Cnergyico Pk Limited, has approved a long-term agreement with Asia Petroleum Limited to transport high-speed diesel through a 14-inch pipeline system, the company said in a filing to the Pakistan Stock Exchange.

The company said its board ratified the plan at a meeting held on February 24.

The proposed arrangement covers a 20-year term for the transportation of high-speed diesel from Cnergyico’s refineries to the Zulfikarabad Oil Terminal in Karachi. The agreement also includes onward connectivity to the White Oil Pipeline system and storage terminals at Port Qasim.

According to the filing, the agreement establishes a commercial and regulatory framework for pipeline-based transportation and will be followed by definitive agreements, subject to conditions precedent. Those conditions include obtaining required governmental and regulatory approvals and completion of necessary connectivity.

Cnergyico said its board has also approved the finalization and execution of the definitive agreement.

The company said shifting to pipeline transportation is expected to reduce reliance on road transport, ease congestion and lower accident risk, while improving supply chain reliability through direct refinery-to-terminal connectivity and access to the White Oil Pipeline system.