Pakistan to partner with Saudi Arabia, Kuwait, Qatar on oil storage scheme

Pakistan intends to collaborate with Saudi Arabia, Kuwait, and Qatar on an oil storage scheme to bolster its energy security, according to Petroleum Minister Ali Pervaiz Malik. The government aims to bolster domestic storage of crude oil and refined products to mitigate exposure to oil supply disruptions, which have resulted from the US-Iran war choking supplies through the Strait of Hormuz.

Malik addressed a press conference in Lahore, revealing that Pakistan plans to secure oil storage in the countries' territories at their own expense and subsequently supply the global market. The commercial bonded scheme, drafted with the assistance of Aramco and other major companies, is pending approval by the Economic Coordination Committee (ECC) following directives from Prime Minister Shehbaz Sharif.

The minister emphasized that Pakistan would secure resources from these countries should a crisis arise, without incurring any additional costs, despite limited financial resources. The US-Iran conflict has caused significant oil supply disruptions, leading to unprecedented price hikes. Pakistan currently imports approximately 90% of its energy requirements, with domestic oil production amounting to 70,000 barrels per day, far below the daily demand of 500,000 barrels.

The government seeks to expedite indigenous oil and gas exploration to lessen dependence on imports. Additionally, Turkish Petroleum is set to commence offshore drilling operations in Pakistani waters, potentially attracting substantial foreign investment in the energy sector. Tenders for liquefied petroleum gas (LPG) will be launched on Monday, and arrangements are underway to provide new gas connections to consumers.

Despite economic pressures, the government has ensured uninterrupted fuel supplies and implemented measures to protect consumers from soaring global prices. The government remains committed to providing maximum relief to the public, even with limited financial resources.