Pakistan Partners with Gulf States on Oil Storage Scheme
Pakistan's government has announced plans to launch a scheme with Saudi Arabia, Kuwait, and Qatar for oil storage to strengthen energy security. The move comes in response to the country's reliance on imported oil, which accounts for around 90% of its energy requirements.
The commercial bonded scheme will allow these countries to store their oil on Pakistan's secure territories at their own cost, with the option to supply oil to the rest of the world from there. In the event of a conflict, Pakistan will have the right to purchase the stored resources and meet its energy needs without having to spend money.
Petroleum Minister Ali Pervaiz Malik stated that $500 million is required for storing crude oil reserves for one month, in addition to $300-400m needed for an underground storage system. The minister emphasized the need to accelerate indigenous oil and gas exploration to reduce reliance on imports.