https://arab.news/8jdqh
- Cnergyico eyes 1 million barrels crude cargo every month this fiscal year if the market remains ‘commercially viable,’ an official says
- Cnergyico’s imports are expected to help Islamabad narrow trade surplus with Washington, a key requirement of Trump administration
KARACHI: Pakistan’s largest refiner, Cnergyico PK Limited, plans to increase its US crude oil imports this year by around 40 percent to at least 12 million barrels, its vice chairman said on Wednesday, as Islamabad plans to diversify energy supplies from the Gulf due to ongoing United States-Iran conflict.
The US-Iran conflict, which began in Feb., has disrupted global oil and energy supplies through the Strait of Hormuz that once accounted for a fifth of global energy shipments, raising concerns among fuel-importing countries.
Cnergyico imported approximately 7.1 million barrels of crude in seven cargoes, worth $750 million, from the United States last fiscal year between October 2025 and May 2026 and has already imported one million barrels this fiscal year which began in July.
“Now we are thinking of importing at least 1 million barrels per month, so we are targeting 12 million barrels,” Qureshi told Arab News on Wednesday.
However, the refiner would purchase the targeted volumes only if it is commercially viable, based on the landing cost of Gulf crude and the resulting gross refining margins.
“If it is better than that, or it will be at par, then only we will take a decision,” Qureshi added.
Cnergyico’s imports are expected to help Islamabad narrow its trade surplus with Washington, a key requirement by President Donald Trump under his recent trade tariffs policy.
Citing State Bank of Pakistan’s data, Qureshi said his company’s imports in the last fiscal year narrowed Pakistan’s trade surplus with the US to 47 percent from 61 percent a year earlier. Pakistan’s exports to the US rose 2 percent to $6.1 billion, while imports surged 39 percent to $3.27 billion in the last fiscal year.
“We are actively evaluating additional US crude purchases, but the exact volumes and timing will depend on commercial economics, availability, freight and our refinery requirements,” Qureshi said.
“We see scope to increase this further if market conditions remain favorable.”
While Pakistan’s Petroleum Division spokesperson Zafar Abbas did not respond to questions from Arab News, an official at the energy ministry confirmed the government was working on a diversification plan as the country’s overreliance on fuel supplies from the Middle East has triggered “imported inflation” in the energy-deficient nation, with consumer prices surging 9.2 percent in July.
Pakistan imports most of its oil from Saudi Arabia and the United Arab Emirates and about 90 percent of its oil and liquefied natural gas (LNG) shipments used to pass through the Strait of Hormuz before the war.
“It goes without saying that the government is trying to diversify its sources of energy,” the official told Arab News on condition of anonymity, declining to comment on the issue of US trade tariffs.
“The minister at times has publicly said that the government is working to diversify its energy sources.”
Qureshi says recent disruption in the Middle East has reinforced the importance of such diversification.
“The government has encouraged Pakistani refiners to explore US crude and more broadly, to diversify the country’s sources of energy supply,” he said, adding that individual crude procurements by his company were based on refinery economics and operational considerations.
Cnergyico is evaluating both spot opportunities and longer-term arrangements with its suppliers.
“There is no fixed allocation between the two at this stage. Our approach is to retain flexibility and procure where we see the best combination of pricing, reliability and security of supply,” the vice chairman said.
About a proposed Exim Bank loan, Qureshi said, Finance Minister Muhammad Aurangzeb recently spoke about a $5 billion facility for Pakistan’s overall exports.
“If it comes on the government level, we can easily import [crude] on that facility as well,” he said, adding that Cnergyico is open to any such financing facility.
Asked if Cnergyico’s additional imports were linked to the US tariffs, Qureshi said the tariff issue was not the fundamental driver of his company’s import strategy.
“The principal considerations for us remain economics, refinery compatibility, reliability and security of supply,” he said.
“The current geopolitical environment, particularly disruption associated with the Iran conflict and the risks surrounding traditional Gulf supply routes, has made diversification even more commercially and strategically relevant.” he said.