Pakistan has struck a historic deal to import its first-ever shipment of US crude oil, a move set to diversify its energy sources and reduce dependence on Middle Eastern suppliers. Cnergyico, Pakistan’s largest refiner, will import 1 million barrels of West Texas Intermediate (WTI) crude from Vitol in October, with the cargo departing Houston this month and arriving in Karachi by mid-October, Vice Chairman Usama Qureshi told Reuters.

“This is a test cargo under our agreement with Vitol. If viable, we could import one cargo monthly,” Qureshi said, emphasizing the shipment is for domestic use, not resale. The deal, sparked by US President Donald Trump’s April threat of 29% tariffs on Pakistani imports, followed months of negotiations. Pakistan’s finance and petroleum ministries pushed local refineries to explore US crude to ease trade tensions.

Oil, valued at $11.3 billion in the year ending June 30, 2025, accounts for nearly 20% of Pakistan’s import bill. The US deal aligns with a broader trade agreement, with Trump claiming it will help develop Pakistan’s “massive oil reserves”—a reference that remains unclear, as Pakistan’s proven reserves are modest at 353.5 million barrels. Islamabad hailed the agreement for promising lower tariffs and increased US investment, though specific tariff reductions were not disclosed.

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Cnergyico’s infrastructure, capable of processing 156,000 barrels daily, requires no adjustments for WTI crude, offering margins comparable to Gulf grades. This shift could reshape Pakistan’s energy landscape, strengthening ties with Washington while navigating global trade pressures.

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