PARCO Secures Crude Outside Strait Amid Disruptions

Pak-Arab Refinery Company (PARCO) has secured two crude oil consignments routed outside the Strait of Hormuz in order to maintain refining operations amid ongoing disruptions affecting maritime traffic through the critical passage, as reported by The News International, citing officials from the Petroleum Division.

According to the officials, PARCO has extended its crude inventory cover from March 15 to March 25 following the procurement of the additional shipments. Each cargo comprises approximately 70,000 barrels of crude oil sourced via alternative export channels.

One consignment was arranged through Abu Dhabi National Oil Company (ADNOC) and dispatched from Fujairah Port on the Gulf of Oman, a strategic storage and bunkering hub situated beyond the Strait of Hormuz.

The second cargo was sourced from Saudi Arabia through the East-West Crude Oil Pipeline, which facilitates transportation of crude from eastern oil fields to export terminals along the Red Sea coast.

PARCO traditionally imports crude under a long-term supply arrangement with ADNOC, with the majority of shipments transiting the Strait of Hormuz. However, prevailing disruptions have necessitated diversification of supply routes.

In parallel, a vessel owned by the Pakistan National Shipping Corporation—MT Karachi—carrying crude for PARCO from ADNOC remains stranded within the Strait due to the ongoing situation.

Officials further indicated that the refinery’s management is exploring additional procurement options through alternate maritime and pipeline routes to ensure uninterrupted operations.

Government authorities have also signalled that, should instability in the Strait persist, Pakistan may formally engage Saudi Arabia to secure preferred-buyer status for crude supplies routed via Red Sea export channels. Such an arrangement could mitigate supply chain risks in the event of prolonged Gulf shipping disruptions.

Sector analysts observed that while alternative crude supply routes may safeguard refinery throughput, liquefied natural gas (LNG) imports remain comparatively exposed, given Pakistan’s significant reliance on Qatari LNG supplies and Saudi Arabia’s limited participation in the LNG export market.

With a refining capacity of approximately 120,000 barrels per day, PARCO has been operating at full throughput for over a year, positioning it as a pivotal component of Pakistan’s downstream petroleum supply chain.