By SKM
November 11, 2025
ISLAMABAD: The second shipment of American crude oil has entered Pakistani territorial waters, marking another significant milestone in the growing energy and trade cooperation between Pakistan and the United States.
According to port authorities, the U.S. crude oil tanker MT Albany, carrying one million barrels of sweet crude oil, arrived near the Pakistani coast and berthed on November 10, 2025, at Cnergyico’s offshore oil terminal — the Single Point Mooring (SPM) facility located in deep sea near Hub, Balochistan. Once docked, it began offloading its cargo of West Texas Intermediate (WTI) crude oil.
This development follows closely after the arrival of the first U.S. crude shipment, the MT Pegasus, which reached Pakistan on October 29. The Pegasus had departed from Houston, Texas, on September 14, carrying around one million barrels of WTI crude. With the arrival of MT Albany, Cnergyico has now imported a total of two million barrels of American crude oil — a first in Pakistan’s energy trade history.
The company has also confirmed to the Exclsuivewaves.com.pk that a third U.S. crude shipment is scheduled for the first week of January 2026, bringing the total value of the three cargoes to over USD 200 million.
Part of Broader Pakistan–U.S. Energy Cooperation
The imports are part of a Pakistan–U.S. trade agreement aimed at strengthening bilateral economic cooperation and diversifying Pakistan’s energy supply sources. Historically, Pakistan has relied heavily on crude imports from the Middle East, particularly Saudi Arabia, the United Arab Emirates, and Kuwait.
The introduction of American crude oil into Pakistan’s refining system represents a strategic shift toward supply diversification and potential cost optimization.
Cnergyico, one of Pakistan’s leading integrated energy companies, operates one of the country’s largest oil refining complexes near Hub, Balochistan. Its offshore SPM terminal enables large crude carriers to offload oil directly into onshore storage and refining facilities — a crucial infrastructure advantage that allows the company to handle large-scale international shipments.
The import of WTI crude — considered one of the world’s highest-quality light sweet crudes — is expected to improve Pakistan’s refining efficiency and product yields. Industry analysts believe this move opens new opportunities for diversified sourcing, while strengthening energy and trade relations with the United States.
Officials familiar with the agreement said that the trade arrangement was finalized after extensive discussions between Islamabad and Washington, aimed at expanding mutual trade and reducing Pakistan’s dependence on a limited number of suppliers.
Transforming Pakistan’s Refining Landscape
Pakistan’s refining industry is undergoing a quiet but significant transformation, with West Texas Intermediate (WTI) crude from the United States emerging as a viable and competitive option for the country’s energy needs.
Despite the longer voyage from the U.S. Gulf Coast, a mix of infrastructure capability, freight efficiency, and favorable pricing has made WTI an economically attractive choice for Pakistani refiners — particularly those with access to deep-water facilities.
Pakistan currently imports crude through three main terminals: Keamari Port and Port Qasim in Karachi, and the privately owned offshore SPM terminal operated by Cnergyico near Hub. While Keamari and Port Qasim have long served as the country’s primary oil import points, their shallow drafts restrict them to smaller vessels carrying no more than 500,000 barrels. Fully laden Aframax tankers cannot berth at these ports, constraining both import volumes and freight efficiency.
By contrast, Cnergyico’s SPM, installed in 2012 at a cost of around USD 120 million, offers a 26-metre draft, deep enough to accommodate Aframax, Suezmax, and even Very Large Crude Carriers (VLCCs). This infrastructure allows the company to import larger, fully loaded cargoes, thereby lowering per-barrel shipping costs and enhancing overall competitiveness.
The Economics of U.S. Crude Imports
A frequent question in energy circles is how U.S. crude can remain economical for Pakistan given the long distance compared to Middle Eastern suppliers. The answer lies in pricing dynamics and vessel economics.
For refineries importing through Karachi’s shallow ports, heavier and sourer grades from Saudi Arabia or the UAE remain practical choices. However, for Cnergyico — which can receive large tankers at its deep-water SPM — importing lighter and sweeter crudes like WTI makes increasing sense.
WTI has consistently traded at a USD 3–4 per barrel discount to Dubai benchmark crudes. This discount largely offsets the additional freight cost from the United States, keeping the delivered price competitive with regional grades. Moreover, WTI’s lighter composition and lower sulfur content yield more high-value refined products and contribute to lower emissions, aligning with Pakistan’s growing focus on cleaner energy.
According to Cnergyico’s Vice Chairman, WTI proved economically viable for the company’s October, November, and January deliveries. For December, however, freight conditions favored Bonny Light, a similarly light and sweet crude from Nigeria, and a one-million-barrel cargo of that grade was booked instead. Thanks to its SPM terminal, Cnergyico was able to make even this West African option financially attractive.
From October 2025 through January 2026, Cnergyico plans to process only low-sulfur crudes such as WTI and Bonny Light — reflecting a strategic focus on both economic efficiency and environmental performance. The company’s experience highlights how infrastructure investment and global crude dynamics are reshaping Pakistan’s import strategy.
With rising premiums on Middle Eastern grades and increasing emphasis on cleaner fuels, WTI is emerging not just as an alternative, but as a smart and sustainable choice for Pakistan’s refining future.
A senior energy analyst commented: “This marks a new chapter in Pakistan’s energy imports. By bringing in American crude, Pakistan gains access to global markets beyond the Middle East — enhancing energy security, refining flexibility, and competitive pricing.”
With both MT Pegasus and MT Albany arriving successfully within weeks of each other, Cnergyico’s initiative is being seen as a model for future public–private collaboration in the energy sector. Based on the success of these initial imports, further contracts for U.S. crude are expected to be negotiated in the coming months.
The historic arrival of these vessels symbolizes not only the beginning of U.S. crude oil exports to Pakistan but also a new era of commercial engagement between Islamabad and Washington — underscoring cooperation, trade diversification, and long-term energy stability. Ends
