Petroleum Minister Ali Pervaiz Malik on Tuesday chaired the kick-off meeting for the feasibility study on establishing Strategic Petroleum Reserves in Pakistan, with international energy consultancy Wood Mackenzie selected to undertake the study after a competitive tender process.
During the meeting, the minister was briefed on the scope and objectives of the study, after which timelines and overall architecture for the assignment were discussed and agreed on.
Malik highlighted that the government is pursuing reforms and initiatives to advance Pakistan’s energy security, recognizing that energy security is intrinsically linked to national security. He said ensuring resilience of energy supplies and reducing vulnerabilities to external shocks is a key priority of the incumbent government.
He said the recent Strait of Hormuz crisis had further magnified the need to strengthen national buffers and build greater resilience against supply disruptions. The Strategic Petroleum Reserves initiative is therefore an important step towards assessing how the country can strengthen its preparedness for potential supply shocks. The Economic Coordination Committee, he said, has already approved a world class bonded scheme for large international oil players.
The minister said the purpose of commissioning the study was to enable the government to make an informed and evidence-based decision before embarking on such a major strategic initiative. He emphasized the study should provide a pragmatic and implementable solution suited to Pakistan’s requirements, helping determine the most appropriate way forward, including the possibility of pursuing development in a phased manner.
The Wood Mackenzie team said that this is the right time for Pakistan to work on energy security, particularly in view of the evolving global energy landscape and recent supply disruptions. They said the study would focus on developing a pragmatic solution based on Pakistan’s specific requirements and circumstances.
The study will cover technical feasibility, integrity, safety and operational assessment of proposed strategic storage facilities; international and regional benchmarks; policy and regulatory requirements; and short-, medium- and long-term implementation options. It will also examine legal, regulatory, financial, commercial and institutional arrangements, including possible public-private partnership models. It would further assess existing infrastructure that could potentially be utilized for strategic storage, taking into account connectivity and logistics requirements, and will provide estimates of capital expenditure, financing options, implementation timelines and institutional responsibilities for phased development of strategic capacity in Pakistan.
Malik directed all relevant stakeholders to extend full cooperation to Wood Mackenzie and ensure timely provision of required data and technical input so that the study could be completed within the agreed timelines and provide a sound basis for future policy decisions. A steering committee would be formed to periodically review progress on this matter.