Cnergyico Pk Limited, Pakistan’s largest oil refinery by nameplate capacity, has signed a 20-year agreement to utilise a pipeline operated by Asia Petroleum Limited (APL) for the transportation of petroleum products, the company disclosed in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

The arrangement will allow Cnergyico to transport high-speed diesel (HSD) from its refinery to the Zulfiqarabad Oil Terminal, with onward connectivity to the White Oil Pipeline (WOP) system and storage facilities at Port Qasim. The long-term agreement is expected to strengthen fuel supply logistics and reduce reliance on road transport.

According to the PSX filing, the two companies have executed a Head of Terms Agreement outlining the commercial and regulatory framework for the use of APL’s 14-inch pipeline system. The execution of final agreements will be subject to regulatory approvals, government clearances and completion of required connectivity.

Cnergyico said the proposed pipeline-based transportation system is expected to reduce traffic congestion and lower accident risks associated with road-based fuel movement. The company added that direct refinery-to-terminal connectivity would improve supply chain reliability and operational efficiency.

Cnergyico is vertically integrated across oil refining and marketing operations. It owns and operates Pakistan’s largest oil refinery in terms of capacity, the country’s largest crude oil storage tanks and a network of retail fuel outlets. The company was incorporated in 1995 and was previously known as Byco Petroleum Pakistan Limited.

The pipeline agreement marks a significant infrastructure move within Pakistan’s downstream energy sector, subject to regulatory and operational approvals.