ISLAMABAD: Pakistan’s largest refinery, Pak Arab Refinery Company PARCO, has secured two alternative crude oil cargoes from outside the Strait of Hormuz, enabling it to sustain operations amid ongoing disruption in the key maritime corridor. The move has extended the refinery’s crude stock cover until March 25, 2026.
Senior officials in the Petroleum Division confirmed that PARCO’s earlier crude reserves were sufficient only until March 15. With the arrival of two 70,000 barrel cargoes, the refinery has gained an additional 10 days of operational stability. One shipment was arranged from Abu Dhabi National Oil Company through Fujairah port, while the second was sourced from Saudi Arabia via Red Sea export facilities.
PARCO maintains a long term supply agreement with ADNOC, which typically exports crude through the Strait of Hormuz. Following the closure, the refinery diverted supplies through Fujairah, a major oil storage and bunkering hub located on the Gulf of Oman, outside the disrupted waterway. Meanwhile, Pakistan National Shipping Corporation vessel MT Karachi, carrying crude for PARCO, remains stranded in the Strait.
The Saudi cargo was transported through the East West Crude Oil Pipeline, also known as Petroline, which carries oil from eastern Saudi fields to Red Sea terminals, bypassing Hormuz entirely. Although pipeline capacity is limited, PARCO successfully secured a shipment through this strategic alternative route.
Officials indicated that if the Strait crisis intensifies, Islamabad may formally request Saudi Arabia to include Pakistan among preferred crude buyers via the Red Sea corridor. Such an arrangement could help stabilize refinery throughput despite prolonged Gulf shipping disruptions. However, experts warn that liquefied natural gas imports, heavily reliant on Qatar, remain exposed to regional instability.
With a refining capacity of 120,000 barrels per day and sustained full capacity operations over the past year, PARCO remains central to Pakistan’s fuel supply chain. Securing diversified crude supply routes is now critical to safeguarding national energy security.
