KARACHI: Pakistan\u2019s largest oil refiner, Cnergyico (CNER.PSX), will import 1 million barrels of crude from Vitol this October, Vice Chairman Usama Qureshi told Reuters on Friday \u2014 marking the country\u2019s first-ever purchase of U.S. oil under a landmark trade agreement. The West Texas Intermediate light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Qureshi said. \u201cThis 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,\u201d he said, adding that the shipment was not meant for resale. The deal follows months of multiple negotiations which first began in April, he said, after U.S. President Donald Trump threatened to impose 29% tariffs on imports from Pakistan. Qureshi said Pakistan\u2019s finance and petroleum ministries encouraged local refineries to explore U.S. crude imports after the April tariff announcement. Vitol did not immediately respond to a request for comment sent outside of office hours. On Thursday, Pakistan hailed a trade deal struck with the U.S., its top export market, and said the agreement would increase investments. The White House said on Thursday the U.S. will charge a 19% tariff on imports from Pakistan. A key China ally, Pakistan has been warming up to Trump after he threatened tariffs. It has credited U.S. diplomatic intervention for ending recent hostilities with neighbouring India and nominated Trump for the Nobel Peace Prize. Oil is Pakistan\u2019s biggest import item and its shipments were valued at $11.3 billion in the year ended June 30, 2025, accounting for nearly a fifth of the country\u2019s total import bill. The import deal will help Pakistan diversify its crude sourcing and reduce reliance on Middle Eastern suppliers, who account for nearly all of its oil imports. \u201cGross refining margin is on par with Gulf grades, and no blending or refinery tweaks are required,\u201d Qureshi said. Cnergyico can process 156,000 barrels of crude per day and operates the country\u2019s only single-point mooring terminal near Karachi, enabling it to handle large tankers unlike other refiners in Pakistan. 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, Qureshi said. The refiner, which has been operating at an average refinery run rate of 30% to 35% due to tepid local demand, is betting on growth in demand for oil products. \u201cWe expect run rates to rise as domestic demand strengthens and local production is prioritised over imported fuels,\u201d Qureshi said. Trump said on Wednesday the U.S. would also cooperate with Pakistan to develop the South Asian country\u2019s \u201cmassive oil reserves\u201d, without providing further details.<\/p>\n","protected":false},"excerpt":{"rendered":"
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