Pakistan's largest refiner expands US crude imports amid Hormuz disruption
The country’s largest refiner Cnergyico is buying more US crude as Islamabad seeks to diversify the country’s energy supplies after disruption caused by the Iran war exposed its dependence on Gulf routes. Pakistan also wants to increase imports from the US to help narrow its trade surplus and secure reductions in trade tariffs imposed by US President Donald Trump. Cnergyico, which first bought US…
Pakistan's largest refiner, Cnergyico, is increasing its purchases of US crude oil following disruptions in Gulf routes caused by the Iran war. The country's energy producers aim to diversify their energy supplies and reduce dependence on Gulf imports. Cnergyico, which began buying US crude last year, is also exploring spot purchases with other suppliers, such as Vitol, based on factors like pricing, reliability, and supply security.
During the fiscal year ending June, the company imported around 8.1 million barrels of US crude, worth approximately $750 million, which accounted for about 80 percent of the increase in US import payments for the country. Cnergyico could further expand its US crude purchases if Pakistan's proposed Export-Import Bank trade-finance facility is extended to the company, allowing for deferred payments to US exporters for up to three years.
The refiner is also considering installation of an additional offshore mooring near Karachi to import and export refined products using large tankers, part of a $1.2 billion upgrade project to meet Euro V standards, reduce furnace oil output, and expand capacity to about 200,000 barrels per day.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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