Pakistan Refiners Seek US, Nigerian Oil as Red Sea Risks Rise

Pakistan’s major refiners are actively seeking crude oil from the United States, Nigeria, Central Asia and traders in Singapore. The urgent procurement shift follows explicit government directives to secure supply chains outside the Middle East as military threats to key maritime chokepoints intensify.

The federal minister for petroleum and natural resources met with industry executives this week and ordered them to immediately identify alternative crude sources. The directive specifically targeted Pakistan Refinery Limited, Pakistan Arab Refinery Company, and National Refinery Limited. These companies must now navigate a rapidly changing supply map to ensure the country avoids fuel shortages.

While UAE crude imported via the Port of Fujairah remains secure because it bypasses the Strait of Hormuz, Saudi Arabian imports are now highly uncertain. Saudi crude typically reaches Pakistan via the Red Sea port of Yanbu. However, Iran-aligned Houthi forces have threatened to block the Bab el-Mandeb Strait, which would effectively sever this Red Sea export route.

To mitigate this operational risk, Pakistani buyers are looking to secure cargoes that are already loaded and navigating outside the Middle East. Inquiries to Singapore-based traders reflect a strategic pivot. By targeting oil already in transit, buyers aim to eliminate the risk of sudden port closures or maritime attacks in the Persian Gulf and Red Sea.

The shipping disruptions have simultaneously upended Pakistan’s liquefied natural gas procurement. This shift has exposed the country to severe financial strain. With the Strait of Hormuz compromised and term-supply cargoes from Qatar effectively stranded, Pakistan can no longer rely on its contracted volumes.

Instead, the country is being forced to purchase LNG on the volatile spot market. This requires paying top dollar for immediate deliveries. For market participants, Pakistan's situation illustrates the immediate financial toll of Middle Eastern geopolitical risks on importing nations, driving up acquisition costs and forcing rapid, expensive supply chain realignments.