Cnergyico Imports Pakistan’s First Private-Sector Cargo of Russian Crude Oil

Cnergyico (PSX: CNERGY) has imported Pakistan’s first private-sector cargo of Russian crude oil, Reuters reported on Monday. Private imports were thought to be unprofitable because cargo had to be split and moved to smaller ships since Pakistan’s ports couldn’t accommodate massive tankers. However, Cnergyico employed its single-point mooring system, which can accommodate deep-draft tankers, a CNERGY spokesperson told the news agency. The crude will be refined at the company’s refinery in Hub, Balochistan. The spokesperson said this development marks an important milestone for the company and the country as well and demonstrates the company’s capabilities and readiness to refine different types and complexities of crude oil. He informed that Cnergyico performed prior due diligence and spoke with external sanctions counsel to verify that the import of Russian oil did not breach any sanctions. Cnergyico intends to sell locally refined petrol and diesel as well as export furnace oil which is commonly used in industrial boilers, power plants, and ship engines. The company aims to make Russian imports viable by exporting furnace oil and earning foreign exchange. According the report, Cnergyico will pay for the Russian oil in Chinese Yuan (CNY) through a letter of credit from a Chinese bank. Pakistan is buying crude oil that Russia has discounted as a result of its shipments being prohibited from European markets. Pakistan’s first government-imported cargo landed in June, and a second government-to-government transfer is currently being negotiated. The country paid for its first import of discounted Russian oil in CNY, which went to state-owned Pakistan Refinery Limited.