Pakistan to import US crude for first time in landmark energy deal

Pakistan’s largest oil refiner, Cnergyico PK Ltd, is set to make history with the country’s first-ever import of U.S. West Texas Intermediate (WTI) Light crude, as part of a broader shift in energy strategy and deepening economic ties with the United States.

The landmark shipment of one million barrels of WTI Light crude oil will be imported in October under a spot deal with global energy trader Vitol, Usama Qureshi, vice chairman of Cnergyico, confirmed to Nukta on Friday. “This is a test cargo under our umbrella term agreement with Vitol,” said Qureshi. “We are evaluating further imports depending on commercial viability.”

The move is not only a milestone for Pakistan’s refining industry but also a key component of expanding economic cooperation between Islamabad and Washington.

The two nations recently concluded an agreement that includes tariff reductions, particularly on Pakistani exports to the United States, the Finance Ministry announced Thursday. The agreement paves the way for expanded collaboration in energy, mining, information technology, cryptocurrency, and other emerging sectors.

It also aims to enhance sub-national partnerships between U.S. states and Pakistani provinces.

In a separate development, former U.S. President Donald Trump weighed in on the deal through a social media post, stating: “We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves. We are in the process of choosing the oil company that will lead this partnership. Who knows, maybe they’ll be selling oil to India someday!”

Cnergyico, which operates Pakistan’s largest refinery and the country’s only Single Point Mooring (SPM) terminal, is pioneering this new crude stream in a bid to diversify supply sources, enhance energy security, and reduce reliance on traditional Gulf suppliers.

“WTI Light is cleaner, yields better fuels like gasoline and jet fuel, and requires no blending or plant modifications,” Qureshi explained. “It’s ideal for local market needs and environmentally friendlier.”

The shipment follows months of coordination between Cnergyico and Pakistan’s finance and petroleum ministries, aimed at deepening energy trade with the U.S.

The company is also pursuing a second SPM to expand its crude-handling infrastructure.

Recent data from the Oil Companies Advisory Committee shows surging demand for fuel in Pakistan. Diesel imports rose 18.7% to 2.037 million metric tons in the fiscal year ending June 30. Petrol imports grew 16.6% to 5.541 million metric tons, while crude oil imports climbed 10.2% to 9.279 million metric tons.

Head of Trading Aumar Abbassciy remarked that more deals depend upon the relative competitiveness of WTI compared to Murban. The current opportunity arose due to the increase in premiums of Murban cargoes, and freight for suezmax vessels softening.

Cnergyico has historically processed light-end AG region crude and has confirmed that U.S. sweet crude grades are compatible with its refining configuration.

The company views this step as part of a broader strategy to prioritize local refining over imports of finished petroleum products.

Meanwhile, Pakistan’s broader trade engagement with the U.S. continues to grow. Exports to the U.S. rose 10% to $6 billion in FY2025, while imports from the U.S. jumped 25% to $2.35 billion, according to the State Bank of Pakistan.

During a recent visit to Washington, Pakistan's Finance Minister Muhammad Aurangzeb emphasized Islamabad's commitment to expanding two-way trade and investment, particularly in sectors with high growth potential.