Pakistan’s largest refiner, Cnergyico, has signed a deal to import 1 million barrels of West Texas Intermediate (WTI) crude oil from Vitol, marking the country’s first-ever purchase of US crude. The US oil shipment, set to load in Houston in August 2025 and arrive in Karachi by mid-October, is a test cargo under a broader agreement. If commercially viable, Cnergyico plans to import one cargo monthly, reducing Pakistan’s heavy reliance on Middle Eastern oil, which constitutes nearly all of its $11.3 billion annual oil imports as of June 2025.
Details of US Oil Shipment
The deal, finalized after negotiations spurred by US tariff threats in April 2025, aligns with a broader trade agreement to enhance bilateral economic ties. Pakistan’s finance and petroleum ministries encouraged local refineries to explore US crude, which offers refining margins comparable to Gulf grades without requiring infrastructure changes. Cnergyico, capable of processing 156,000 barrels daily, operates Pakistan’s only single-point mooring terminal near Karachi, giving it an edge in handling large tankers. Plans for a second terminal and refinery upgrades over the next five years aim to boost capacity.
What’s Next
Currently operating at 30-35% capacity due to low domestic demand, Cnergyico anticipates higher utilization as local fuel needs grow. The agreement also includes cooperation on developing Pakistan’s potential oil reserves, estimated at 9.1 billion barrels of recoverable shale oil, though claims of “massive” reserves remain unproven. This shift diversifies Pakistan’s energy sources and strengthens US-Pakistan trade, valued at $7.3 billion in 2024, amid ongoing tariff negotiations.
Published in SouthAsianDesk, August 1st, 2025
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