Pakistan has begun searching for alternative crude oil suppliers outside the Gulf region following reports that the Strait of Hormuz has been shut down, alongside a Houthi declaration barring Saudi oil exports through the Bab el-Mandeb Strait from the Red Sea port of Yanbu.
The developing crisis has raised fresh worries about the country’s energy security and how dependable its oil import channels remain going forward.
Emergency Meeting Prompts Refinery Action
The federal minister for petroleum and natural resources called an emergency session with chief executives and managing directors from the country’s oil refineries, briefing them on the shifting regional security landscape tied to the renewed conflict involving the United States, Iran, and the Houthis, according to a report by The News.
Officials who attended the meeting told The News that the minister instructed refinery leadership to move quickly in locating alternative crude oil sources to keep supplies to Pakistan uninterrupted.
In the wake of that meeting, refineries started reaching out to international trading firms to gauge how much crude oil might be available from the United States, Singapore, Nigeria, and Central Asian states. These regions are being considered as backup supply routes since their shipments can avoid passing through the Strait of Hormuz entirely.
Imports through Oman’s ports are also under review, though industry officials view this option as comparatively risky given the current climate.
Refineries Adjust Import Strategies
Pakistan Arab Refinery Company (Parco), Pakistan Refinery Limited (PRL), and National Refinery Limited (NRL) are still bringing in crude oil from the United Arab Emirates via the Port of Fujairah. Saudi crude shipments from Yanbu on the Red Sea, however, have become far less certain.
Cnergyico Pakistan Limited, which typically sources its crude from the United States, Africa, and Central Asian nations, is expected to keep relying on these same markets, according to industry sources.
Sources indicated that Parco has asked the UAE to supply seven cargoes of crude oil through Fujairah, up from its usual four to five cargoes from the UAE plus two from Saudi Arabia via Yanbu. Since the Iran conflict broke out on February 28, Yanbu supplies have grown increasingly unpredictable, leading Parco to prepare for the possibility of meeting its full crude requirement through Fujairah alone.
Government Pushes for Energy Security Contingencies
Officials noted that clarity on the status of Yanbu crude imports is expected within the next two to three days. In the meantime, senior government decision-makers have directed refineries to keep exploring additional import channels to protect Pakistan’s broader energy security.
Industry sources also pointed out that Singapore is home to several large oil trading firms with crude cargoes already in transit at sea, positioning it as a potential source for quick-turnaround supplies if the need arises.
As the search for alternative crude oil sources continues, Pakistan’s refining sector appears to be moving proactively to shield the country from further disruption tied to the ongoing Middle East conflict.