Cnergyico Pk Limited (CPL) has imported the first private-sector shipment of 100,000 metric tonnes (MT) of Russian crude oil, Urals, the company announced on Monday in a move that could help reduce the country’s dependence on product imports.
The cargo, carried by an Aframax tanker, arrived at Cnergyico’s single point mooring (SPM) facility near Karachi, where it will be processed at one of its refineries. The tanker took 28 days to travel from Russia to Pakistan.
Cnergyico’s import of Russian crude oil is a private sector arrangement, following the country’s first government-to-government (G2G) shipment of 100,000 MT of Russian crude in June this year, which was processed by Pakistan Refinery Limited (PRL).
“Yes, we will refine the 100,000 MT of Urals in two weeks and export the furnace oil produced from it. If our refinery is able to achieve better yields from the Urals, then Cnergyico Pk will continue to import Russian Urals,” Usama Qureshi, a director of Cnergyico, told The News.
Qureshi declined to disclose the price of the Urals crude, saying it was a purely private deal. He said that Cnergyico’s refinery, formerly known as Byco refinery, would be refining Urals for the first time in its history, and if the experiment was successful and produced more gasoline and diesel, the company would import more Urals in the future.
“We will export the furnace oil produced from the Urals and sell the gasoline, diesel, and other petroleum products (POL) derived from Russian crude within the country,” Qureshi said.
Qureshi said this would help ensure a stable fuel supply for the country, reduce dependence on product imports, and save foreign exchange. He said that it would take two to three days for the pipeline to transport the crude from the SPM to the refinery.
“Cnergyico plans to export the fuel oil to generate foreign exchange for the country. This export can contribute to the country’s economic growth and stability.”
The company said that it had conducted detailed and extensive due diligence and consulted with its external sanctions counsel to ensure that the import did not violate any applicable sanctions.
Previously, state-owned PRL took three months to refine Russian Urals crude. PRL produced 10 percent gasoline, 55-60 percent furnace oil, 10-15 percent diesel, and the remaining 15 percent other products from Urals crude. The furnace oil produced by PRL had high viscosity and had to be mixed with 10 percent diesel to flow, resulting in a loss of 25 percent of the crude value.
Processing the first Urals cargo at one of Cnergyico’s refineries marks an important milestone for the company and the country. It demonstrates the company’s capabilities and readiness to refine different types and complexities of crude oil.
With its refining capacity, Cnergyico is well-positioned to contribute to the energy sector both domestically and internationally, while stimulating economic growth and development for the country.
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