Cynergico Asia Diesel Pipeline Deal to Boost Fuel Supply Chain Efficiency

Cnergyico Pk Ltd. has signed a long term agreement with Asia Petroleum Ltd. to move high speed diesel through a dedicated pipeline. This Asia Diesel Pipeline Deal will run for 20 years. As a result, the agreement aims to improve diesel delivery across key supply points. The company shared this update in a regulatory filing on Wednesday. The project will move diesel from its refineries to the Zulfiqarabad Oil Terminal. In addition, the terminal will connect to the White Oil Pipeline system at Port Qasim.

Direct Refinery to Terminal Link

This setup will create a direct refinery to terminal transport route for diesel. Therefore, fuel can move more smoothly across the network. However, authorities must approve the project before work begins.
Both companies must also complete the physical pipeline connection. Once ready, the system will support faster and safer fuel transfers. It will also reduce manual handling across transport stages.

Lower Road Traffic and Logistics Costs

Pipeline transport will reduce reliance on tanker trucks. As a result, it may ease highway traffic and improve public safety. Fewer trucks on roads can also lower accident risks.
Moreover, companies may reduce logistics costs through automated fuel movement. Product losses may also decline compared to road transport. For example, pipelines limit exposure to delays and spillage risks.

Next Steps for Implementation

Convergico’s board has approved the plan in principle. Management can now finalize the full agreement once conditions are met. After approvals, both partners will move toward operational execution. The Asia Diesel Pipeline Deal may strengthen Pakistan’s fuel supply chain in the long run. It can also support a more reliable diesel distribution network nationwide.