Oil, Gas and Refinery Sectors - updates

Pakistan offers Kuwait strategic oil reserves​

Minister seeks Gulf partnership to build emergency storage after war exposes vulnerability


ZAFAR BHUTTAMay 13, 20262 min read
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ISLAMABAD:
Pakistan has offered Kuwait the opportunity to build strategic oil reserves in the country to address any future war like situation. At present, Pakistan has no strategic reserves. A United Arab Emirates (UAE) firm, ADNOC, has built such reserves in India, and Pakistan is now looking towards Middle East partners such as Saudi Arabia and Kuwait.

Federal Minister for Petroleum Ali Pervaiz Malik met Kuwaiti Ambassador Nassar Abdulrahman Jasser Almutairi to discuss regional developments and energy cooperation. Both sides agreed to strengthen bilateral relations and explore new opportunities around building strategic storages in Pakistan that could bring mutual benefit.

During the meeting, Pakistani petroleum minister offered Kuwait to build strategic oil reserves in Pakistan.

The government is already discussing a plan for strategic oil reserves with industry stakeholders. The government has collected over Rs1 trillion in petroleum levy from consumers, which was meant to build oil infrastructure, but all governments have spent this money on current expenditure.

The US Iran war exposed Pakistan as the only country in the region without strategic oil reserves for emergencies. The oil industry has also pushed the government to take up the proposal with Saudi Arabia, which emerged as a key partner during the war. Pakistan has signed a defence pact with Saudi Arabia, boosting bilateral ties. Saudi Arabia announced in 2019 that it would set up an oil refinery and build strategic reserves by investing more than $10 billion, but a tussle with the then prime minister, Imran Khan, put the project on the back burner.

During the meeting, the minister expressed gratitude to Kuwait for its timely facilitation in ensuring the safe dispatch of the vessel Khairpur, which reached Pakistan carrying diesel supplies during a challenging period. The vessel transported approximately 45,000 tonnes of diesel and 10,000 tonnes of jet fuel from Kuwait under special approvals, following disruptions caused by the closure of the Strait of Hormuz.

The minister said Pakistan remains committed to peace and stability, adding that the repercussions of the ongoing conflict are being felt across the region and beyond. He noted that, with the concerted efforts of the field marshal and the prime minister, the Khairpurvessel safely reached Pakistan, ensuring continuity in fuel supply and supporting national energy needs.

Ambassador Almutairi appreciated Pakistan's peace efforts and stated that Kuwait encourages its brothers in Pakistan to continue their constructive role for peace. He remarked that Pakistan has proven itself through its responsible stance and is now viewed with a renewed and elevated status in the international community.
tribune.com.pk

Pakistan offers Kuwait strategic oil reserves | The Express Tribune

Pakistan offers Kuwait strategic oil reserves
tribune.com.pk tribune.com.pk
 

Arrival of second Qatari LNG tanker a major diplomatic achievement​

May 13, 2026

EDITORIAL:
The second Qatari Liquefied Natural Gas (LNG) tanker docked at Port Qasim, Karachi, yesterday, a major diplomatic achievement for Pakistan. Reports suggest very high level Pakistani, Iranian, and Qatari leadership were involved to ensure safe passage of the two tankers, and therefore it is baffling as to why this news item is sourced to a British news agency rather than the Foreign Office sharing it with the local media.

QatarEnergy declared force majeure (that frees parties from liability when extraordinary unforeseeable events occur) to all affected long-term buyers shortly after the US-Israel attack on Iran and the latter’s retaliatory strikes on US-Israeli interests in the region.

On 19 March, the company announced damage to Ras Laffan Industrial City from three attacks projecting lost revenue of about 20 billion dollars and estimated repair time of up to five years. The attacks damaged trains 4 (a joint venture with ExxonMobil’s share at 34 percent) and 6 (with ExxonMobil’s share at 30 percent) accounting for 12.8 million tons of production per annum (17 percent of Qatar exports).
 
A noted private sector expert maintains that Pakistan will save 22 to 50 million dollars from the two LNG cargoes through lower-cost Qatari LNG arrangements, inclusive of 22 million dollars in import costs per cargo and additional cost related operational expenses. However, it is unclear whether this expert is making informed assumptions or whether he is privy to the exact terms of the deal.

Be that as it may, the Pakistan government has appropriately dealt with the fallout of the conflict and as stated accurately by Prime Minister Shehbaz Sharif has not faced an oil supply crisis due to effective monitoring, adequate reserves and an improved, and need one add, successful strategy that includes austerity measures plus an effective foreign policy.

In marked contrast, Indian Prime Minister Narendra Modi appealed to Indians a day ago to revive working from home, limit foreign travel and buy less gold to deal with a price surge due to the Middle East conflict.
 
Kithir range is suitable for that for oil reserve
 

Pakistan can buy Russian oil​

Anwar Iqbal
May 20, 2026

WASHINGTON: Pakistan is among the countries that could benefit from a new United States temporary licence allowing selected energy-importing nations to access Russian oil, diplomatic sources told Dawn.

The US has introduced a 30-day general licence issued by the US Department of the Treasury to ease immediate supply pressures in global crude markets and provide relief to energy-vulnerable countries.

Diplomatic sources said the arrangement may also apply to Pakistan, though they cautioned that Islamabad might not be able to fully take advantage of the concession due to limited technical capacity.

US offers 30-day relief to energy-vulnerable countries
Click to expand...

They noted that Pakistan has not previously imported Russian crude at scale and may lack the refining infrastructure required to process such shipments. US Treasury Secretary Scott Bessent said on a social media post released on Monday that his department is issuing a temporary 30-day general licence to “provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea.”
 

Hub fixes Iranian petrol price at Rs250 per litre​

Saleem Shahid
May 21, 2026


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QUETTA: In a move aimed at protecting consumers from rising fuel costs, the district administration of Hub has officially fixed the price of Iranian petrol at Rs250 per litre across the district.

Deputy Commissioner of Hub, Jumma Dad Khan Mandokhail, took notice of reports regarding unjustified increases in the price of Iranian petrol by dealers and traders involved in the border fuel business. Following the notice, the administration announced strict measures against overpricing, hoarding, and profiteering.

The deputy commissioner said the government had permitted the Iranian petrol trade to provide relief to the public, adding that no individual or cartel would be allowed to exploit citizens through artificial price hikes.
 
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Pakistan plans oil reserves, storage push as Hormuz constraints expose vulnerabilities​

  • Pakistan currently has no strategic petroleum reserves
Published May 26, 2026

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By Reuters

KARACHI: Pakistan plans to boost domestic storage for crude oil and refined products to increase its energy security, according to a government document that was shared with oil producers and some of the world’s leading trading firms.

Despite depending on supplies through the Strait of Hormuz for up to 90% of its oil and liquefied natural gas imports, Pakistan has no strategic petroleum reserves.

That has left it exposed to supply shocks provoked by the Iran war even as its lending programme with the International Monetary Fund (IMF) limits room for costly state-owned emergency stocks.

According to the document reviewed by Reuters, the energy ministry is proposing to build strategic petroleum reserves as well as commercial storage through bonded terminals, refineries and oil marketing companies (OMCs). It is also pushing for more oil and gas exploration and production, upgrades to its refineries, and a consolidation of its downstream sector.

“Pakistan’s oil security requires both emergency reserves and stronger local supply capacity,” the ministry said in the document.

It shared the proposed framework with Saudi Aramco, Abu Dhabi National Oil Corp, Kuwait Petroleum Corp, QatarEnergy and PetroChina as well as oil trading firms Vitol and Trafigura and storage operator Vopak.

Trafigura and Vitol declined to comment. The other companies and Pakistan’s petroleum ministry did not respond to Reuters’ requests for comment.

Petroleum Minister Ali Pervaiz Malik said last week that building reserves was “easier said than done”, especially for a country in an IMF programme with severe fiscal challenges, but added the government was trying to move quickly from planning to implementation.

Bonded storage, strategic reserves, and energy infrastructure

Under the bonded storage plan, international suppliers and traders would be allowed to hold petroleum stocks, creating commercial inventories that could support domestic supply during emergencies. The government could also allow companies to store fuel for re-export.

The document did not spell out details such as incentives, pricing, tax, foreign-exchange, offtake or ownership terms, or whether companies would be expected to invest in storage infrastructure.

The ministry wants the bonded storage framework for suppliers to be finalised by June.

In addition to its lack of strategic reserves, the document cited constrained port infrastructure, limited ship-to-ship capacity and insufficient storage among Pakistan’s vulnerabilities.

The build-up of the government’s own strategic reserves would be paid for by a ring-fenced fund financed by Rs10 ($0.0359) per litre from the existing levy on petroleum, with allocations to start on July 1. The document says that allocation would generate about $700 million a year.

Pakistan currently imposes a Rs58 per litre tax on diesel and Rs102.17 per litre on gasoline.

Additionally, the government plans to require that refineries hold 15 days of crude stocks and oil marketing companies to maintain 30 days of finished products, with the rules to be phased in through refinery policy, margin revisions and downstream consolidation by June 2028.

The document also calls for an energy infrastructure corridor around the city of Hub and Port Qasim, including single-point mooring, storage and pipeline connectivity, to reduce reliance on smaller, costlier shipments.
 
I heard about this proposal 30 years back ……
And that Saudi oil refinery ….

And the bullet train too …. I swear not lying Mian saanp promised back when I was a kid ….
 

Islamabad plans oil reserves, storage push​

Reuters
May 27, 2026

KARACHI: Pakistan plans to boost domestic storage for crude oil and refined products to increase its energy security, according to a government document that was shared with oil producers and some of the world’s leading trading firms.

Despite depending on supplies through the Strait of Hormuz for up to 90 per cent of its oil and liquefied natural gas imports, Pakistan has no strategic petroleum reserves.

That has left it exposed to supply shocks provoked by the Iran war even as its lending programme with the International Monetary Fund limits room for costly state-owned emergency stocks.

According to the document reviewed by Reuters, the energy ministry is proposing to build strategic petroleum reserves as well as commercial storage through bonded terminals, refineries and oil marketing companies. It is also pushing for more oil and gas exploration and production, upgrades to its refineries and a consolidation of its downstream sector.

Govt plans to cut reliance on Hormuz imports
Click to expand...

“Pakistan’s oil security requires both emergency reserves and stronger local supply capacity,” the ministry said in the document.

It shared the proposed framework with Saudi Aramco, Abu Dhabi National Oil Corp, Kuwait Petroleum Corp, QatarEnergy and PetroChina and oil trading firms Vitol and Trafigura and storage operator Vopak.

Trafigura, Vitol and Aramco declined to comment. The other companies and Pakistan’s petroleum ministry did not respond to requests for comment.

Petroleum Minister Ali Pervaiz Malik said last week that building reserves was “easier said than done,” especially for a country in an IMF programme with severe fiscal challenges, but added the government was trying to move quickly from planning to implementation.
 
Energy infrastructure

Under the bonded storage plan, international suppliers and traders would be allowed to hold petroleum stocks, creating commercial inventories that could support domestic supply during emergencies. The government could also allow companies to store fuel for re-export.

The document did not spell out details such as incentives, pricing, tax, foreign exchange, offtake or ownership terms, or whether companies would be expected to invest in storage infrastructure
 
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