Pak-Arab Refinery Company has secured alternative crude supplies outside the Strait of Hormuz, allowing Pakistan’s largest refinery to keep operating as the closure of the key shipping lane disrupts regional energy flows.
According to reports, the refinery arranged two 70,000-barrel cargoes routed beyond the Strait, extending its crude stock cover to March 25 from an earlier March 15 estimate.
One shipment was sourced from Abu Dhabi National Oil Company via the port of Fujairah on the Gulf of Oman, which lies outside the Strait of Hormuz. The second cargo was secured from Saudi Arabia through the East-West Crude Oil Pipeline, also known as Petroline, which transports crude from the kingdom’s eastern oil fields to Red Sea export terminals, bypassing the chokepoint.
PARCO, which processes about 120,000 barrels per day and has been running at full capacity for over a year, is a linchpin in Pakistan’s fuel supply chain. The refinery typically receives Emirati crude under a long-term supply agreement with ADNOC, with shipments normally transiting the Strait.
A vessel operated by Pakistan National Shipping Corporation, MT Karachi, remains stranded in the Strait while carrying crude for PARCO, underscoring the operational risks posed by the disruption.
Officials said management is working to secure additional shipments through alternative routes. If the crisis deepens, Islamabad could formally approach Saudi Arabia to seek preferential access to Red Sea exports to help sustain refinery operations.
Energy analysts cautioned that while crude flows may be partially rerouted, Pakistan’s liquefied natural gas imports, heavily reliant on Qatar, would remain exposed to prolonged instability in Gulf shipping lanes.
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