Pakistan seeks new oil routes amid Hormuz tensions

Pakistan’s refineries are reaching out to traders for crude oil from the United States, Nigeria, Singapore and central Asia as tensions threaten shipments through the Strait of Hormuz and the Red Sea.

Middle East disruptions push Pakistan to look elsewhere

At a recent meeting with the federal minister for petroleum and natural resources, industry leaders were briefed on escalating threats to crude supplies. The minister urged refinery executives to identify alternative sources immediately, senior officials said. The renewed closure of the Hormuz channel and the Iran‑aligned Houthi group’s warnings to block the Bab el‑Mandeb Strait have made Saudi crude shipments from Yanbu uncertain.

Currently, Pakistan Refinery Limited (PRL), Pakistan Arab Refinery Company (Parco) and National Refinery Limited (NRL) import United Arab Emirates crude through the Port of Fujairah, which lies outside the Hormuz corridor. Those arrangements remain intact, but the risk of a broader supply interruption has prompted a wider search for cargoes that do not rely on the volatile waterways.

Potential new suppliers under review

Refiners have begun contacting traders in Singapore to locate crude already loaded and en route, according to the report. The United States, central Asian producers and Nigeria are also being evaluated as possible alternatives. While no specific contracts have been announced, the outreach reflects a proactive stance to keep domestic fuel supplies stable.

In parallel, Pakistan’s liquefied natural gas (LNG) procurement has become more expensive. The closure of Hormuz and the stranding of cargoes from Qatar have forced the country onto the spot market, where prices are markedly higher. The dual pressure on oil and gas markets shows the urgency of diversifying import sources.

As part of the broader effort, Pakistani officials are also reviewing logistical routes that bypass the threatened straits.

In the meantime, Pakistani refiners continue to manage existing inventories while awaiting confirmations from potential new suppliers. The situation remains fluid, and the government’s guidance emphasizes maintaining sufficient stockpiles to cushion any sudden supply gaps.