Pakistan to launch oil‑storage partnership with Saudi Arabia, Kuwait and Qatar, boosting energy security.

Pakistan’s petroleum minister announced on August 9 that the government is moving forward with a bonded oil‑storage scheme that will involve Saudi Arabia, Kuwait and Qatar. Under the plan, the Gulf states will store their crude oil in secured Pakistani territories at their own cost, and Pakistan will be able to purchase the oil if conflict affects supply chains. The commercial bonded proposal was drafted with the help of Aramco and other major companies and has been forwarded to the Economic Coordination Committee for approval. The minister said a decision could be made next week. Pakistan has no strategic petroleum reserves, making it vulnerable to supply shocks when global routes are disrupted, such as those caused by the recent U.S.‑Iran hostilities that blocked the Strait of Hormuz. The government estimates that $500 million will be needed for a one‑month storage facility and another $300–400 million for an underground system. Investment feasibility will be assessed in the coming months. Pakistan imported roughly 90 percent of its energy in 2025. Domestic crude production was about 70,000 barrels per day against a demand of around 500,000 barrels. The ministry stressed the need for increased indigenous exploration. The government will open tenders for liquefied petroleum gas (LPG) connections next week. Fuel prices will continue to be revised daily to reflect market fluctuations, moving away from the weekly revisions that had been practiced before the renewed conflict. The ministry said it is committed to sustaining fuel supplies during the U.S‑Iran hostilities and thanked the Gulf partners for helping strengthen the country’s energy security.