ISLAMABAD: Pakistan’s refining sector 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 long voyage from the US Gulf Coast, a mix of infrastructure capability, freight efficiency and favorable pricing has made WTI an economically sound choice for Pakistani refiners — particularly those with access to deep-water facilities.
Pakistan currently receives crude oil imports through three terminals: Keamari Port and Port Qasim in Karachi, and the privately owned offshore Single Point Mooring (SPM) operated by Cnergyico near Hub, Balochistan. While Keamari and Port Qasim have long served as the country’s main oil import points, their shallow drafts limit them to smaller vessels carrying no more than about 500,000 barrels. Fully laden Aframax tankers cannot berth at these ports, constraining both import volumes and freight efficiency.
Cnergyico’s SPM, installed in 2012 at a cost of around $120 million, offers a 26-metre draft, deep enough to accommodate larger ships such as Aframax, Suezmax, and even Very Large Crude Carriers (VLCCs). This infrastructure gives Cnergyico a significant freight advantage by allowing the import of larger, fully laden cargoes, thereby lowering per-barrel shipping costs.
A frequent question in energy circles is how US crude can be economical for Pakistan when the Middle East lies so much closer. The answer lies in both pricing and vessel economics. For refineries importing through Karachi’s shallow ports, heavier and sourer grades from the UAE or Saudi Arabia remain the practical choice. But for Cnergyico — whose deep-water SPM can receive large tankers — importing lighter and sweeter grades such as WTI makes increasing sense.
WTI has consistently traded at a discount of about $3-4 per barrel compared with Dubai benchmark crudes. This differential largely offsets the additional freight cost from the United States, leaving the delivered price close to that of regional grades. The lighter composition and lower sulfur content of WTI also yield higher-value refined products and contribute to lower emissions — a growing priority for Pakistan’s refining sector.
According to Cnergyico’s vice chairman, the company found WTI economically viable for October, November, and January deliveries. For December, however, freight conditions favored Bonny Light, a similarly light and sweet crude from Nigeria, and one million barrels of that grade were booked instead. With its SPM advantage, Cnergyico was able to make even this West African option financially attractive.
From October 2025 through January 2026, Cnergyico plans to run 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 and global crude dynamics are reshaping Pakistan’s import strategy. With rising premiums on Middle Eastern grades and a growing emphasis on cleaner fuels, WTI is proving to be not just an alternative but a smart and sustainable fit for Pakistan’s refining future.
