Pakistan to enter the first US RU to trade, to buy oil from Cnergyico: Report | Today news

Pakistan’s largest refinery Cnergyico will import 1 million barrels of oil from Vitol in October, Vice Chairman Usama Qureshi told Reuters on Friday, which was the country’s first purchase of US rough after a landmark transaction. The Western Texas Intermediate Light RU load will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Qureshi said. “It is a truck load under our umbrella term agreement with Vitol. If it is commercially viable and available, we can import at least one load per month,” he said, adding that the consignment was not intended for resale. The agreement follows months of multiple negotiations that first began in April, he said after US President Donald Trump threatened to draw up 29% tariffs on the import from Pakistan. Qureshi said Pakistan’s financing and petroleum ministers urged local refineries to explore US rough imports after the April tariff announcement. Vitol did not immediately respond to a request for comments sent out of office hours. On Thursday, Pakistan entered into a trade agreement with the US, its top export market. Pakistan said the agreement would lead to lower rates and increased investment, without specifying the level of duties that should be levied on Pakistani shipping. Pakistan, a major ally in China, warmed up to Trump after threatening rates. This has credited US diplomatic intervention for ending recent hostilities with neighboring India and Trump nominated for the Nobel Peace Prize. Oil is the largest import item of Pakistan and its shipping was valued at $ 11.3 billion in the year ended June 30, 2025, which accounts for almost a fifth of the country’s total import account. The import agreement will help Pakistan diversify its rough acquisition and reduce the dependence on Middle Eastern suppliers, which make up almost all its oil imports. “The gross refinement margin is in line with the wave degrees, and no mixing or refinery adjustments are needed,” Qureshi said. Cnergyico can process 156,000 barrels of crude per day and run the country’s only single-point plant terminal near Karachi, which allows it to handle large tankers as opposed to other refineries in Pakistan. The company plans to install a second foreign terminal to allow larger or more frequent consignments, and to upgrade its refinery over the next five to six years, Qureshi said. The refinery, which works with an average 30-35% refinery due to a small local demand, bet on the growth in demand for oil products. “We expect running rates to rise as domestic demand strengthens and local production is prioritized above imported fuel,” Qureshi said. Trump said on Wednesday that the US will also work with Pakistan to develop the South Asian country’s “massive oil reserves” without providing further details.