Pakistan Launches Strategic Oil Storage Partnership with Saudi Arabia, Kuwait, and Qatar
Pakistan is set to launch an oil storage partnership with Saudi Arabia, Kuwait, and Qatar to boost its energy security and shield against potential supply disruptions. The partnership will allow these countries to store oil on Pakistani territory under a bonded arrangement at their own cost.
Under the proposed scheme, Pakistan will have the right to purchase the stored oil during a conflict or major supply disruption by paying for the resources, enabling the country to meet its domestic energy needs without making large upfront investments.
Petroleum Minister Ali Pervaiz Malik said that the initiative would help Pakistan enhance its energy security despite limited financial resources. He noted that establishing domestic crude oil reserves sufficient for one month would require around $500 million, while an underground storage system could cost an additional $300-400 million.