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Pakistan Invites Global Firms to Study Strategic Petroleum Storage

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Pakistan is accelerating plans for strategic petroleum reserves and new storage facilities as reliance on imports via the Strait of Hormuz continues to expose the country to supply disruptions, Pakistan's Oil Ministry said Tuesday.

Pakistan LNG invited internationally recognized technical firms to bid on a study to develop strategic petroleum reserves, with proposals due by July 1, 2026, according to a government notice.

Pakistan imports nearly 90% of its oil and liquefied natural gas through the Strait of Hormuz, yet the country still lacks emergency petroleum reserves to manage potential energy supply shocks.

The ministry proposed strategic reserves, bonded storage terminals, refinery upgrades and stronger domestic oil and gas production to improve long-term energy security and local supply capacity.

Pakistan shared the proposed framework with Saudi Aramco, Abu Dhabi National Oil Company, Kuwait Petroleum, QatarEnergy, PetroChina, Vitol, Trafigura and Vopak, Reuters reported, citing a document.

Under the bonded storage proposal, international suppliers and trading firms could hold fuel inventories inside Pakistan to support emergency domestic demand and potentially store products for re-export.

The document said Pakistan faces additional energy security risks from limited petroleum storage, weak port infrastructure and insufficient ship-to-ship transfer capacity.

The government plans to require refineries to maintain 15 days of crude inventories and oil marketing firms to hold 30 days of finished fuel supplies under rules phased in through June 2028, according to the document.

Pakistan plans to fund strategic reserves through a ring-fenced allocation of 10 rupees per liter from the existing petroleum levy, starting July 1, generating about $700 million annually. New fuel stockholding requirements for refiners and oil marketing firms will phase in through June 2028.

Pakistan's Ministry of Energy, Saudi Aramco, Abu Dhabi National Oil Corp, Kuwait Petroleum Corp, QatarEnergy, PetroChina, Vitol and Trafigura did not immediately respond to' request for comment.

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