Pakistan’s refiners are inquiring traders about potential crude oil supply from the U.S., Nigeria, Singapore, and central Asia, amid the escalating crisis in the Middle East that threatens supply from both the Strait of Hormuz and the Red Sea.
Following a meeting with the federal minister for petroleum and natural resources, who briefed industry representatives on the growing threats to crude oil supply, refiners have intensified efforts to secure cargoes from non-Middle Eastern producers, local outlet The News reported on Wednesday.
The renewed closure of the Strait of Hormuz and the threats from the Iran-aligned Houthis to block the Bab el-Mandeb Strait that would cut off Saudi Arabia’s Red Sea oil exports have prompted Pakistan to seek alternatives.
Pakistan Refinery Limited (PRL), Pakistan Arab Refinery Company (Parco), and National Refinery Limited (NRL) continue import crude oil from the United Arab Emirates through the Port of Fujairah, outside the Strait of Hormuz.
Set OilPrice.com as a preferred source in Google .
But now imports of Saudi crude oil from the Red Sea port of Yanbu have become uncertain amid the Houthi threat to block shipping at the Bab el-Mandeb Strait.
At the meeting this week, Pakistan’s oil minister directed refinery executives to immediately identify alternative sources of crude oil to ensure uninterrupted supplies to Pakistan, senior officials who attended the meeting told The News.
The U.S., central Asia, and Africa’s top producer Nigeria are being evaluated as alternatives. Refiners have also contacted traders in Singapore to inquire about crude cargoes that are already loaded and at sea away from the Middle East, according to The News.
The Middle East crisis has also upended Pakistan’s LNG procurement.
Pakistan is paying top dollar for LNG supply as the renewed closure of the Strait of Hormuz and the stranding of cargoes from its term supplier Qatar have forced the South Asian country to seek liquefied natural gas on the spot market.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- Fossil Fuels Still Generate 57% of the World’s Electricity
- Japan’s Power Prices Soar to 3.5-Year High
- Oil Jumps Nearly 4% as Houthis Threaten Red Sea Blockade