The deal was sealed shortly after Donald Trump announced that the United States would help Pakistan develop its “massive oil reserves”, though further details remain undisclosed.
In a major development in US-Pakistan trade relations, Pakistan will soon receive its first-ever shipment of American crude oil, marking a strategic milestone for the South Asian country’s energy diversification efforts. The deal follows several months of negotiations that were triggered by US President Donald Trump’s decision in April to impose 29 per cent tariffs on Pakistani imports.
According to Usama Qureshi, Vice Chairman of Cnergyico, Pakistan’s largest oil refinery, the firm has finalised an agreement with global energy trader Vitol to import 1 million barrels of West Texas Intermediate (WTI) light crude from the United States. “This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,” said Qureshi to Reuters, adding that the cargo is not intended for resale.
Trump’s Oil Promise and Tariff DiplomacyThe deal was sealed shortly after Donald Trump announced that the United States would help Pakistan develop its “massive oil reserves”, though further details remain undisclosed. The trade engagement also comes amid revised US tariffs, with Pakistan now facing a reduced 19 per cent rate effective August 7, down from 29 per cent.
Trump’s shifting stance reflects a broader energy and geopolitical recalibration. While Pakistan remains a close ally of China, its recent outreach to the Trump administration signals strategic realignment in response to economic pressure.
Currently, Pakistan is heavily dependent on Middle Eastern suppliers for crude oil.
The WTI cargo will depart from Houston in August and is expected to arrive at Karachi port in October 2025.
The Cnergyico refinery, capable of processing 156,000 barrels per day, also operates Pakistan’s only single-point mooring terminal near Karachi, enabling it to handle large tankers.
Energy Plans and Local Refinery UpgradesQureshi noted that domestic demand remains muted, with the refinery operating at 30–35 per cent capacity. However, he expects a pickup in petroleum product consumption, particularly if local production is prioritised over imports. “We expect run rates to rise as domestic demand strengthens and local production is prioritised,” he added, hinting at a second offshore terminal and future refinery upgrades over the next 5–6 years.