# Cnergyico Expands US Crude Imports Amid Hormuz Disruptions
**ISLAMABAD:** Pakistan’s largest refinery, Cnergyico, is increasing its purchases of US crude oil as the disruption to Middle Eastern shipping routes has exposed the country’s heavy dependence on Gulf supplies and the Strait of Hormuz.
The move is also aligned with Islamabad’s efforts to increase imports from the United States to narrow its trade surplus and support negotiations over US tariffs.
Cnergyico, which began importing US crude last year, is considering additional spot purchases alongside longer-term contracts with suppliers including Vitol, based on pricing, reliability and security of supply, Cnergyico Vice Chairman Usama Qureshi told Reuters.
The refiner imported around **8.1 million barrels of US crude over nine months**, including 7.1 million barrels worth approximately **$750 million** during the fiscal year ended June 2026.
According to State Bank of Pakistan data, Pakistan’s payments for US imports increased by **$914 million to $3.27 billion** during the fiscal year, meaning Cnergyico’s purchases accounted for roughly 80% of the increase.
Cnergyico could further increase its US crude purchases if Pakistan’s proposed **EXIM Bank trade-financing facility** is extended to the refinery. Islamabad has proposed the facility to allow Pakistani buyers to defer payments to US exporters for up to three years.
Pakistan traditionally sources most of its crude from **Saudi Arabia and the United Arab Emirates**, while around 90% of the country’s oil and LNG imports pass through the Strait of Hormuz. Disruptions caused by the Iran conflict have heightened concerns over the security of these supply routes.
Rising fuel costs have also increased pressure on the government to diversify energy supplies, amid renewed public protests over inflation and petroleum prices. Pakistan is exploring alternatives, including importing Saudi crude through **Yanbu**, on the Red Sea coast.
Meanwhile, Cnergyico is evaluating the development of a **second offshore mooring** connected to its storage network. The facility would enable the refinery to handle larger tankers for importing crude and exporting refined products outside Karachi’s congested ports.
The proposed facility forms part of Cnergyico’s **$1.2 billion refinery upgrade**, which aims to bring production in line with Euro V standards, reduce furnace-oil output and increase refining capacity to around **200,000 barrels per day**.
Fawad Basir, head of research at KTrade Securities, said disruptions in the Middle East had highlighted the risks associated with Pakistan’s reliance on a limited number of supply routes.
He added that using **Very Large Crude Carriers (VLCCs)** to transport US crude could reduce freight costs by around **25-30%**, while a second Single Point Mooring would help improve vessel turnaround times and reduce pressure on Karachi’s port infrastructure.
By Reuters
