KARACHI: Cnergyico Pk Limited has taken a strategic step to modernise Pakistan’s energy supply chain by approving a long term pipeline transportation arrangement with Asia Petroleum Limited. The agreement, disclosed to the Pakistan Stock Exchange, signals a major transition from road based fuel movement to integrated pipeline infrastructure.

The Head of Terms Agreement allows Cnergyico to utilise APL’s 14 inch pipeline system for a proposed period of 20 years. The pipeline will transport high speed diesel from Cnergyico’s refinery to the Zulfiqarabad Oil Terminal, creating direct connectivity to the White Oil Pipeline system and storage facilities at Port Qasim.

Company officials said the framework outlines key commercial and regulatory terms and will lead to execution of definitive agreements once required government approvals and technical connectivity milestones are achieved. The arrangement reflects a broader push toward improving efficiency and sustainability in the downstream petroleum sector.

By shifting diesel transportation to pipeline infrastructure, Cnergyico aims to significantly reduce dependence on oil tankers. The move is expected to cut road congestion, lower accident risks and decrease logistical bottlenecks that often disrupt fuel supply chains.

Energy analysts view the initiative as a step toward strengthening national fuel security. Direct refinery to terminal connectivity will improve supply chain reliability, enhance storage coordination and ensure smoother distribution of petroleum products across key consumption hubs.

Cnergyico operates Pakistan’s largest oil refinery by nameplate capacity and maintains the country’s largest crude oil storage tanks along with an extensive retail network. Incorporated in 1995 and formerly known as Byco Petroleum Pakistan Limited, the company continues to expand its integrated energy infrastructure to support long term growth in Pakistan’s oil and refining sector.