KARACHI: Pakistan`s largest oil refiner, Cnergyico, will import 1 million barrels of US crude from Vitol in October, marking the country`s first-ever purchase of American oil following a landmark trade agreement.

Cnergyico Vice-Chairman Usama Qureshi told Reuters on Friday that the West Texas Intermediate (WTI) light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October.

`This is a test spot cargo under our umbrella term agreement with Vitol. If commercially viable and available, we could consider importing at least one cargo per month,` said Qureshi, adding that Vitol has been a long-term trading partner of the company.

The deal follows months of negotiations that began in April, after former US President Donald Trump threatened to impose 29pc tariffs on Pakistani imports. In response, Pakistan`s finance and petroleum ministries encouraged local refiners to diversify their sourcing and explore US-origin crude.

Vitol did not immediately respond to a request for comment.

Pakistan on Thursday hailed its trade agreement with the United States its top export market saying it would boost investment and economic cooperation. The White House announced the US would apply a 19pc tariff on Pakistani imports, a reduction from the initially threatened 29pc.

Qureshi said the US crude deal will help Pakistan diversify its oil sourcing and reduce overreliance on Middle Eastern suppliers, which currently provide nearly all of the country`s crude imports.

He noted that the gross refining margin for WTI is comparable to Gulf-origin grades and that no blending or technical adjustments are required to process the shipment.

`If the evaluation of this first cargo proves positive, Cnergyico could consider buying 1m barrels of US oil monthly,` he said, adding that the company`s current monthly crude demand stands at 4.6m barrels. `It aligns well with domestic market requirements, especially as demand strengthens during the OctoberNovember period.

Cnergyico operates the country`s only single-point mooring terminal off the coast of Karachi, allowing it to handle large tankers. The company can process 156,000barrels oferude perday and planstoinstalla second offshore terminal to accommodate higher volumes and upgrade its refinery over the next five to six years.Currently, the refiner is operating at a run rate of 30-35pc due to subdued local demand, but it anticipates a pickup in oil product consumption going forward.-Reuters