Pakistan is seeking to strengthen its energy security through a proposed Gulf oil storage scheme, $5 billion in refinery upgrades and renewed offshore exploration with Türkiye as global supply disruptions expose its reliance on imports.
Disruptions around the Strait of Hormuz have highlighted the risks facing Pakistan, which imports around 90 per cent of its energy requirements. Domestic oil production stands at roughly 70,000 barrels per day, compared with demand of about 500,000 barrels per day.
Under a proposed commercial bonded storage scheme, Saudi Arabia, Kuwait and Qatar would store crude oil and petroleum products on Pakistani territory at their own cost.
Petroleum Minister Ali Pervaiz Malik said the three countries would be able to supply the stored oil to international markets from Pakistan, while Islamabad would have the right to purchase the reserves during a conflict to meet domestic needs.
The proposal, prepared with assistance from Saudi Aramco and other major companies, has been sent to the Economic Coordination Committee for consideration.
Pakistan currently has no strategic petroleum reserves. Maintaining enough crude oil stocks for one month would require around $500 million, while an underground storage system could cost an additional $300 million to $400 million.
The vulnerability has become more pronounced as conflict and disruption around the Strait of Hormuz have affected global oil supplies, putting additional pressure on import-dependent economies.
Attention is also turning to the infrastructure needed to convert imported crude oil into fuel.
Companies are expected to begin signing investment agreements worth around $5 billion to modernise Pakistan’s ageing refineries, moving beyond memorandums of understanding towards formal commitments.
The country’s refining sector has faced decades of underinvestment, leaving existing facilities largely dependent on ageing hydro-skimming technology.
Modernising that capacity would give Pakistan greater ability to process petroleum products domestically at a time when disruptions to international supply chains can quickly lead to higher costs and shortages.
Pakistan is also seeking new domestic sources of oil and gas.
Turkish Petroleum is expected to begin offshore drilling in Pakistani territorial waters in September or October, reviving exploration after a gap of around two decades.
The project is expected to attract between $120 million and $130 million in investment. Any commercially viable discovery could eventually reduce Pakistan’s reliance on imported energy.
The offshore drilling plans come alongside efforts to accelerate domestic oil and gas exploration as Pakistan seeks to narrow the gap between production and demand.
For Pakistan, strengthening oil security involves tackling vulnerabilities on several fronts: maintaining access to reserves during a crisis, increasing its capacity to refine fuel domestically and searching for new sources of oil and gas.
Read more:
The explosion at King Khalid International Airport in Riyadh on Saturday afternoon killed at least 12 people and injured a further 309, according t...
Indian police detained more than 2,000 protesters in Delhi on Saturday as authorities blocked a planned demonstration calling for the resignation o...
At least 12 people, including three children, have been killed in a Russian attack on the Ukrainian city of Zaporizhzhia, a day after U.S. Presiden...
Leaders of countries from the Commonwealth of Independent States (CIS) have agreed to hold coordinated population censuses around 2030. They took the decision at the CIS Council of Heads of State meeting in Awaza, Turkmenistan on Friday, media reported.
The explosion at King Khalid International Airport in Riyadh on Saturday afternoon killed at least 12 people and injured a further 309, according to Saudi Arabia’s Civil Aviation Authority. The airport remains closed until further notice.
Britain and Israel have reached a temporary compromise over the future of the British Consulate General in East Jerusalem, easing a diplomatic dispute that had threatened to further strain relations between the two countries.
South African judge Navanethem “Navi” Pillay won the Nobel Peace Prize on Friday “for her efforts to promote peace and international law,” the Norwegian Nobel Committee said.
The U.S. has imposed sanctions on the International Criminal Court (ICC) on Friday (9 October) escalating tensions with European allies and potentially targeting companies that provide services to the tribunal. The move came hours after former ICC judge Navi Pillay won the Nobel Peace Prize.
The explosion at King Khalid International Airport in Riyadh on Saturday afternoon killed at least 12 people and injured a further 309, according to Saudi Arabia’s Civil Aviation Authority. The airport remains closed until further notice.
Turkic states are assessing the feasibility of passport-free travel between countries using national ID cards, Kürşad Zorlu, the Deputy Chairman of Türkiye’s ruling AK Party said on Saturday.
European Union measures suspending import duties on 80 per cent of Armenian exports to the bloc came into effect on Saturday. The temporary liberalisation measures are aimed at supporting Armenian producers and exporters following trade restrictions imposed on the country's products by Russia.
Georgia is enjoying one of its biggest and highest-quality grape harvests since independence. By 6 October, growers in the country's main wine-producing region, Kakheti, had delivered 182,210 tonnes of grapes, with 99 per cent rated medium or high quality, despite recent protests over prices.
Uzbekistan has unveiled plans to deepen economic ties with Central Asia and Azerbaijan, proposing shared artificial intelligence infrastructure, a critical minerals alliance and a regional trade strategy extending to 2035.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment