Pakistan seeks alternative crude oil sources amid Gulf supply concerns

• Petroleum ministry briefs refineries on evolving regional risks.
• Refineries directed to secure alternative crude supplies.
• Alternative markets chosen as shipments bypass Hormuz.

ISLAMABAD: Amid reports of the Strait of Hormuz being closed and the Houthis’ declaration prohibiting Saudi oil exports via the Bab el-Mandeb Strait from Yanbu on the Red Sea, Pakistan has moved to identify alternative crude oil suppliers outside the Gulf region. 

The unfolding situation has intensified concerns over the country’s energy security and the reliability of its oil import supply.

At an emergency meeting with chief executive officers (CEOs) and managing directors (MDs) of the country’s oil refineries, the federal minister for petroleum and natural resources briefed industry representatives on the evolving regional security situation arising from the renewed conflict involving the United States, Iran and the Houthis, The News reported.

The minister directed refinery managements to immediately identify alternative sources of crude oil to ensure uninterrupted supplies to Pakistan, top officials who attended the meeting told The News.

Following the meeting, refineries began contacting international trading companies to assess the availability of crude oil from the United States, Singapore and Nigeria and Central Asian States. These markets are being explored as alternative supply sources because shipments from these locations can bypass the Strait of Hormuz.

Imports from Oman’s ports are also being evaluated, although industry officials consider this option relatively risky under the circumstances.

Pakistan Arab Refinery Company (Parco), Pakistan Refinery Limited (PRL) and National Refinery Limited (NRL) are continuing to import crude oil from the United Arab Emirates through the Port of Fujairah. However, imports of Saudi crude from the Red Sea port of Yanbu have become uncertain.

Cnergyico Pakistan Limited, which has traditionally sourced crude oil from the United States, Africa and Central Asian countries, will continue importing crude from these markets, industry sources said.

According to the sources, Parco has requested the UAE to provide seven cargoes of crude oil through Fujairah. The refinery normally imports four to five cargoes from the UAE and two cargoes from Saudi Arabia via Yanbu.

However, since the outbreak of the Iran conflict on February 28, supplies from Yanbu have become increasingly uncertain, prompting Parco to plan for meeting its entire requirement through Fujairah, if necessary.

Officials said the situation regarding crude oil imports from Yanbu is expected to become clearer within the next two to three days. Meanwhile, the government’s top decision-makers have instructed refineries to continue exploring additional import options to safeguard Pakistan’s energy security.

Industry sources added that Singapore hosts several major oil trading companies with crude cargoes already at sea, making it a potential source of prompt supplies should the need arise.