Cnergyico Pk Ltd. has ratified a head of terms agreement with Asia Petroleum Ltd. to use a 14-inch pipeline network for 20 years to transport high-speed diesel from its refineries, the company said in a regulatory filing on Wednesday.
Under the arrangement, diesel will be moved from Cnergyico’s refining facilities to the Zulfiqarabad Oil Terminal, where it will connect to the White Oil Pipeline system and storage infrastructure at Port Qasim.
The setup is expected to establish a direct refinery-to-terminal corridor for diesel distribution.
The agreement remains subject to regulatory approvals and the completion of physical connectivity between the facilities.
Pipeline transport is expected to reduce reliance on tanker trucks, easing highway congestion and lowering accident risks while improving delivery reliability. It may also cut logistics costs and minimize product losses compared with road-based haulage.
Cnergyico’s board has authorized management to finalize and execute definitive agreements once the conditions precedent are met.