Pakistan’s leading oil refinery Cnergyico announced Monday that it has imported first private-sector shipment of Russian crude oil.
This development comes as Russia’s oil exports face restrictions due to Ukraine war, leading to discounted prices.
Cnergyico’s utilised its single-point mooring facility, capable of handling deep-draft tankers, to enable private imports. This achievement demonstrates the company’s capability and Pakistan’s readiness to refine different types of crude oil.
The company plans to refine and sell domestically produced gasoline and diesel from the imported Urals crude while exporting furnace oil, which has global demand and can help Pakistan earn foreign exchange.
Cnergyico took measures to ensure compliance with international sanctions by consulting external sanctions advisors, addressing concerns related to the import of Russian oil.
Earlier, Pakistan imported Russian crude in June and negotiations were underway for a second government-to-government shipment, indicating a growing energy partnership between the two nations.
Cnergyico is Pakistan’s largest refinery operator with a daily capacity of 156,000 barrels, representing a third of nation’s total refining capacity of 450,000 barrels per day. This refinery’s unique feature, a single-point mooring, offers a significant advantage.
While the payment for the first government-imported Russian crude was made in Chinese yuan, the payment method for Cnergyico’s cargo remains undisclosed. However, it’s suggested that Cnergyico will also use yuan via a letter of credit from a Chinese bank.
Pakistan’s goal to import 100,000 barrels per day of Russian crude this year, a substantial portion of its total imports, reflects the nation’s efforts to tackle foreign exchange challenges and inflation. Last year, Pakistan imported 154,000 barrels per day of crude oil.
Cnergyico remains optimistic about the viability of Russian imports, with plans to export furnace oil to generate foreign exchange. This development could have implications for Pakistan’s energy landscape and global energy markets.
