Cnergyico ratifies 20-year pipeline agreement with Asia Petroleum for HSD transport

Cnergyico Pk Limited has informed Pakistan Stock Exchange (PSX) that its board ratified the execution of a Head of Terms of Agreement with Asia Petroleum Limited for the use of APL’s 14-inch pipeline system to transport high-speed diesel (HSD).

According to the disclosure, the board approved the move in its meeting held on February 24, 2026. The proposed arrangement covers a 20-year term for transportation of HSD from CPL’s refineries for cargo bound to Zulfikarabad Oil Terminal.

The company said the arrangement includes onward connectivity to White Oil Pipeline (WOP) system and storage terminals at Port Qasim.

It states agreement sets a commercial and regulatory framework for pipeline-based transportation and will be followed by definitive agreement(s), subject to conditions precedent.

These conditions include required governmental and regulatory approvals as well as completion of connectivity, according to the filing.

Cnergyico also said the board has approved the finalisation and execution of the definitive agreement.

The company said that the proposed shift is expected to reduce reliance on road transport, lower congestion and accident risk, and improve supply chain reliability through direct refinery-to-terminal connectivity and access to the WOP system.