Pakistan Aims for Regional Energy Hub with New Storage Facility
Pakistan plans to establish its first commercial bonded oil storage system, a facility that would allow Gulf producers and global commodity traders to store petroleum products in the country for onward export. This move is aimed at positioning Pakistan as a regional storage and distribution hub and bolstering fuel security.
According to Federal Minister for Petroleum Ali Pervaiz Malik, the proposal would be placed before the Economic Coordination Committee for approval later in the day. The minister emphasized that Pakistan currently has no dedicated national strategic reserve and relies entirely on commercial oil stocks that could be drawn upon in the event of a major global supply disruption.
Malik also announced plans to deregulate the gas sector, restructure and unbundle Sui companies, and move gradually toward a single market-clearing price under a reform roadmap being developed with technical assistance from the World Bank. The minister highlighted that a proposal to separate transmission, distribution, and energy businesses of Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited had been discussed with World Bank officials.