ISLAMABAD: Pakistan has begun exploring alternative crude oil import sources beyond the Gulf region following reports of the closure of the Strait of Hormuz and the Houthis’ ban on Saudi oil shipments through the Bab el-Mandeb Strait, as authorities move to safeguard the country’s energy security.
The decision was taken during an emergency meeting chaired by Federal Minister for Petroleum Ali Pervaiz Malik with the chief executive officers (CEOs) and managing directors (MDs) of the country’s oil refineries, where the evolving regional security situation involving the United States, Iran, and the Houthis was reviewed, senior officials told The News.
During the meeting, the minister directed refinery managements to immediately identify alternative crude oil supply sources to ensure uninterrupted fuel availability in Pakistan.
Following the directives, local refineries initiated contacts with international trading companies to assess the availability of crude oil from the United States, Singapore, Nigeria, and Central Asian countries. These alternative sources are being considered because shipments can reach Pakistan without passing through the Strait of Hormuz.
Refineries are also evaluating imports through Oman’s ports, although industry officials consider that option relatively risky under the prevailing regional security conditions.
Currently, Pakistan Arab Refinery Company (PARCO), Pakistan Refinery Limited (PRL), and National Refinery Limited (NRL) continue to import crude oil from the United Arab Emirates through the Port of Fujairah. However, supplies of Saudi crude from the Red Sea port of Yanbu have become increasingly uncertain.
Meanwhile, Cnergyico Pakistan Limited, which traditionally sources crude oil from the United States, Africa, and Central Asia, is expected to continue importing from those regions.
According to industry sources, PARCO has requested the UAE to supply seven cargoes of crude oil through Fujairah. The refinery typically imports four to five cargoes from the UAE and two cargoes from Saudi Arabia via Yanbu. Since the outbreak of the Iran conflict on February 28, however, shipments from Yanbu have become uncertain, prompting the refinery to prepare for sourcing its entire crude requirement through Fujairah if necessary.
Officials said the outlook for crude supplies from Yanbu is expected to become clearer within the next two to three days. In the meantime, the government has instructed refineries to continue identifying additional import options to strengthen Pakistan’s energy security and minimise supply risks.
Industry sources also noted that Singapore, home to several major international oil trading companies with crude cargoes already at sea, could provide an important source of prompt supplies if disruptions to traditional shipping routes persist.
Story by Khalid Mustafa
