Cnergyico Orders Second US Oil Cargo, Eyes Larger Imports
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SINGAPORE: Pakistan’s largest oil refiner, Cnergyico, has placed an order for a second shipment of US crude, after declaring its first purchase commercially viable. The move signals the company’s growing interest in American oil, Vice Chairperson Usama Qureshi confirmed on Wednesday.
Under its term supply arrangement with European trader Vitol, the refiner will receive one million barrels of West Texas Light (WTL) crude in November. “Our trading team reviewed multiple crude options for November and found WTL’s gross refining margin slightly stronger than Gulf crude,” Qureshi said. “If the economics continue to work, we will keep importing.”
The decision follows Pakistan’s first-ever US crude cargo, which sailed out of Houston earlier this month aboard the Suezmax tanker Pegasus, chartered by Vitol. Ship-tracking data from Kpler shows the vessel will dock in Karachi by late October.
Pakistan and the United States signed a landmark trade deal in August, opening the door for US energy sales in exchange for reduced tariffs on Pakistani exports. President Donald Trump has pushed trading partners to expand purchases of American crude under such agreements.
Until now, Pakistan relied almost entirely on Middle Eastern suppliers. But Cnergyico, which operates the country’s only single-point mooring terminal capable of handling large tankers, now sees an opportunity to diversify. Qureshi said the company is considering further US purchases of at least one million barrels, depending on market conditions.
Rising shipping costs and higher spot premiums for West Texas Intermediate (WTI), however, could narrow the arbitrage for November-loading cargoes bound for Asia.
Cnergyico also plans to boost capacity by developing a second offshore terminal and pursuing long-term upgrades, betting on higher domestic fuel demand in the years ahead.
The Cnergyico had order to import 1 million barrels of oil from Vitol in October this year. The country’s first-ever purchase of US crude following a landmark trade deal with President Donald Trump.
The West Texas Intermediate light crude cargo will be loaded from Houston and is expected to arrive in Karachi in the second half of October. Courtesy: Reuters
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