Cnergyico Board Ratifies 20-Year Pipeline Arrangement with Asia Petroleum

PAKISTAN

Cnergyico Pk Limited (CPL) has informed the Pakistan Stock Exchange that its Board of Directors has ratified the execution of a Head of Terms agreement with Asia Petroleum Limited (APL) for the utilization of APL’s 14-inch pipeline system.

The decision was taken during the board meeting held on February 24, 2026. Under the proposed arrangement, CPL intends to use APL’s pipeline network for a period of 20 years to transport all of its High Speed Diesel (HSD) produced at its refineries and destined for the Zulfiqarabad Oil Terminal. The system will provide onward connectivity to the White Oil Pipeline (WOP) network and storage terminals at Port Qasim.

The agreement outlines the agreed commercial and regulatory framework for pipeline-based transportation. However, the execution of definitive agreement(s) remains subject to the fulfilment of certain conditions precedent, including required governmental and regulatory approvals, as well as completion of connectivity arrangements.

According to the company, the proposed pipeline-based transportation model is expected to significantly reduce reliance on road transport. This shift is anticipated to help minimize road congestion and accident risks, while strengthening supply chain reliability through direct refinery-to-terminal connectivity and access to the WOP system.

The development marks a strategic step toward enhancing operational efficiency and improving logistics infrastructure within Pakistan’s downstream oil sector. – ER News Desk

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