ISLAMABAD — Oil dependent Pakistan could no longer ignore prolonged disruption in Gulf and Hormuz disruptions expose that risk, Cnergyico is turning to US crude amid new chapter in Pakistan’s oil strategy.
Pakistan’s largest vertically integrated oil refining company Cnergyico ramped up purchases of US crude as disruptions linked to Iran war expose country’s heavy dependence on Gulf energy routes. Cnergyico Vice Chairman Usama Qureshi said the refinery is evaluating additional purchases of American crude, including spot shipments alongside long-term arrangements with Vitol and other suppliers.
Karachi petroleum refinery already imported approximately 8.1 million barrels of US crude this year. The scale of Cnergyico’s purchases is important. Pakistan’s payments for US imports increased by $914 million to $3.27 billion during the fiscal year, according to central bank data.
Cnergyico’s American crude purchases alone accounted for roughly 80% of that increase, highlighting the refinery’s growing role in Pakistan-US energy trade.
The company could further increase US crude purchases if it becomes eligible for Islamabad’s proposed EXIM Bank trade-financing facility. The scheme, pitched by Pakistan last month, could allow Pakistani buyers to defer payments to US exporters for as long as three years.
For Islamabad, increasing US energy purchases could serve a dual purpose by securing alternative oil supplies while helping rebalance trade with Washington and potentially supporting efforts to obtain reductions in US tariffs. The urgency behind Pakistan’s diversification drive has grown following disruptions caused by the regional conflict. Pakistan traditionally depends heavily on Saudi Arabia and the United Arab Emirates for oil supplies, while around 90% of its oil and LNG imports previously travelled through the Strait of Hormuz. That dependence has emerged as a major vulnerability amid regional instability.
Cnergyico pursued major expansion of its own infrastructure. The refinery is considering a second offshore Single Point Mooring connected to its storage network, allowing large tankers to handle crude and refined products offshore and helping bypass congestion at Karachi’s ports. The proposed facility forms part of a massive $1.2 billion refinery upgrade designed to bring production up to Euro V standards, reduce furnace-oil output and expand refining capacity to around 200,000 barrels per day.
