Pakistan plans strategic oil reserves

Pakistan has decided to encourage oil producing countries to set up strategic oil reserves in an Energy City being planned by the government at Gwadar Port.

These strategic reserves will be consumed by Pakistan if any emergency situation arises. "In case of emergencies like the breakout of war, Pakistan will have the first right to utilise the oil reserves," an official told The Express Tribune.

Kuwait is the first country that has shown keen interest in building strategic buffers in the Energy City at Gwadar Port. At present, a high-level committee is working to identify some other places in Balochistan for setting up a new port. The committee has also been tasked with finding a suitable location for the Energy City.

Earlier, the government had planned to build an oil city at Gwadar Port, which did not materialise due to opposition from some friendly countries. "Now, it plans to set up an Energy City where strategic oil reserves will be built along with establishing LNG and LPG terminals," the official said.

Meanwhile, Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry invited Kuwait to invest in strategically located coastal and energy logistics corridors and outlined a wide range of maritime and port infrastructure projects to attract foreign capital.

Kuwaiti Ambassador Nassar Abdulrahman Jasser Al-Mutairi met the petroleum minister to find out investment opportunities in Gwadar. The minister also asked him to invest in building strategic oil reserves.

Additionally, the government is awaiting some announcement from Saudi Arabia, which was keen to develop an oil refinery and oil reserves at Gwadar Port. Later, progress on the project came to a halt. Now that Pakistan and Saudi Arabia have signed a defence pact, Pakistan is hopeful that Riyadh could pour money into oil buffers.

In the meeting, according to a statement issued on Thursday, the maritime affairs minister offered the Kuwaiti ambassador opportunities for investment in fuel storage, bonded terminal facilities, jetty construction, port infrastructure and the planned "Energy City", aimed at developing integrated energy and logistics hubs near key ports.

Junaid Anwar Chaudhry said Pakistan was seeking international partnerships to modernise its maritime sector and increase the country's role in regional trade and energy transit. "Pakistani ports offer significant potential for long-term investment in logistics, storage and maritime infrastructure," he stressed.

The minister asked Kuwait to explore the feasibility of projects linked to the storage and handling of liquefied petroleum gas (LPG), liquefied natural gas (LNG), crude oil and white oil products at ports. He proposed the establishment of rental-based bonded storage facilities, which could support regional trade flows and improve supply chain efficiency for energy imports and exports.

Among the projects presented to Kuwait was a proposed multipurpose terminal at Port Qasim, one of Pakistan's largest commercial ports near Karachi. Chaudhry said new terminals and storage infrastructure were being planned to ramp up cargo handling capacity and strengthen the position of Pakistan's ports as a regional maritime gateway.

Discussions also covered cooperation in infrastructure development and jetty construction, with the maritime minister assuring Kuwaiti investors of full government facilitation for potential ventures.

"Our talks formed part of broader efforts to secure foreign investment in Pakistan's transport and logistics sectors amid the government's push to expand economic cooperation with Gulf states," he stated.

The ambassador showed interest in reviewing the proposed projects, particularly those linked to the Energy City and port-based fuel storage infrastructure. Both sides agreed to continue consultations with follow-up engagements as Pakistan sought to deepen economic ties with the Gulf Arab nation through maritime-sector collaboration.

In April this year, Chaudhry announced plans to establish the Pakistan Maritime Energy City (PMEC), an ambitious initiative aimed at meeting both domestic and international energy storage and re-export requirements as part of a broader strategy to expand Pakistan's economic footprint.

Chairing a meeting to review the identification of sites for three or four new ports along the country's coastline, the minister said Pakistan had already demonstrated its potential by facilitating foreign transshipment cargo in the face of regional tensions. He noted that the momentum would be leveraged to position the country as a key regional hub for energy logistics.

A 12-member multi-agency committee was constituted under the "Hundred Years Vision 2047-2147" to identify suitable locations for new deep-sea ports and associated infrastructure. The committee would lay the groundwork for future maritime expansion and economic growth.

Speaking at the meeting, Chaudhry said the Energy City would offer international stakeholders the facility to store oil, LNG and LPG for onward export. "Meeting Pakistan's needs remains the top priority, but the facility will also cater to global demand," he stressed, adding that the Energy City would be integrated with ports' infrastructure.

The minister directed the committee to begin work on identifying suitable land for the project and prepare a comprehensive development plan. He emphasised that consultations with all stakeholders, particularly provincial governments, would be carried out prior to the project's formal launch.