Pakistan’s Cnergyico boosts US crude purchases amid Hormuz tensions

Pakistan is also seeking to increase imports from the United States as part of efforts to reduce its trade surplus with Washington and secure lower trade tariffs.

Cnergyico first purchased US crude oil last year. Vice Chairman Usama Qureshi told Reuters that the company is considering more spot purchases as well as longer-term contracts with suppliers such as Vitol. The decisions will depend on pricing, reliability and supply security.

Qureshi said Cnergyico imported around 8.1 million barrels of US crude over nine months. Of this, about 7.1 million barrels, worth around $750 million, were imported during the fiscal year that ended in June.

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 purchases accounted for around 80% of that increase.

The refinery could increase its US crude purchases further if it gets access to a proposed EXIM Bank trade-finance facility. The facility would allow Pakistani buyers to delay payments to US exporters for up to three years.

Pakistan currently relies heavily on Saudi Arabia and the United Arab Emirates for oil supplies. Before the recent disruptions, around 90% of the country’s oil and liquefied natural gas imports passed through the Strait of Hormuz.

Rising fuel costs and supply concerns have increased pressure on the government to find alternative sources. Pakistan is also exploring options such as importing Saudi crude through Yanbu on the Red Sea coast.

Cnergyico is also considering the construction of a second offshore mooring connected to its storage facilities. The project would allow the refinery to handle large tankers outside Karachi’s congested ports.

The planned infrastructure is part of a $1.2 billion upgrade aimed at meeting Euro V fuel standards, reducing furnace-oil production and increasing the refinery’s capacity to around 200,000 barrels per day.

Analysts said the disruptions in the Middle East have shown the risks of relying heavily on a single supply route. Using very large crude carriers to transport US oil could reduce freight costs by 25% to 30%, while a second offshore mooring could also help ships load and unload more quickly.