hydrabadi_arab
Trusted Member
Petroleum Minister Ali Pervaiz Malik on Sunday said plans were underway to launch a scheme with Saudi Arabia, Kuwait and Qatar for oil storage to strengthen energy security.
Pakistan has been planning to boost domestic storage for crude oil and refined products to increase its energy security, it emerged in May. With no strategic petroleum reserves, the country has been left exposed to oil supply shocks resulting from the US-Iran war that has choked supplies through the Strait of Hormuz.
Addressing a press conference in Lahore today, Malik said: “I am grateful to the governments of Saudi Arabia, Kuwait and Qatar that we will have a bonded scheme with them, under which these countries will store their oil on the secure territories of Pakistan at their own cost, and supply to the entire world from here.”
He added that Pakistan will have the right that in the case of a conflict, it could “buy those resources from them by paying for them and fulfil our needs”.
The minister said the “commercial bonded scheme drafted with the help of Aramco and other major companies” has been forwarded to the Economic Coordination Committee (ECC) upon the directives of Prime Minister Shehbaz Sharif.
“When, God-willing, a decision is made on it next week, you will see the progress,” he added, asserting that Pakistan’s energy needs will be fulfilled “without spending money and despite a lack of resources”.
The US-Israel war on Iran has caused oil supply disruptions through the Strait of Hormuz, which has been effectively blockaded, leading to unprecedented hikes in petroleum prices.
The minister said the government was committed to strengthening energy security. He noted that $500 million were required for storing crude oil reserves for one month, in addition to $300-400m needed for an underground storage system.
He said the government would later debate whether the country could invest this amount, adding that the leadership would work on it in the upcoming months.
Pakistan has been planning to boost domestic storage for crude oil and refined products to increase its energy security, it emerged in May. With no strategic petroleum reserves, the country has been left exposed to oil supply shocks resulting from the US-Iran war that has choked supplies through the Strait of Hormuz.
Addressing a press conference in Lahore today, Malik said: “I am grateful to the governments of Saudi Arabia, Kuwait and Qatar that we will have a bonded scheme with them, under which these countries will store their oil on the secure territories of Pakistan at their own cost, and supply to the entire world from here.”
He added that Pakistan will have the right that in the case of a conflict, it could “buy those resources from them by paying for them and fulfil our needs”.
The minister said the “commercial bonded scheme drafted with the help of Aramco and other major companies” has been forwarded to the Economic Coordination Committee (ECC) upon the directives of Prime Minister Shehbaz Sharif.
“When, God-willing, a decision is made on it next week, you will see the progress,” he added, asserting that Pakistan’s energy needs will be fulfilled “without spending money and despite a lack of resources”.
The US-Israel war on Iran has caused oil supply disruptions through the Strait of Hormuz, which has been effectively blockaded, leading to unprecedented hikes in petroleum prices.
The minister said the government was committed to strengthening energy security. He noted that $500 million were required for storing crude oil reserves for one month, in addition to $300-400m needed for an underground storage system.
He said the government would later debate whether the country could invest this amount, adding that the leadership would work on it in the upcoming months.
