ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik chaired the kick-off meeting for a feasibility study on establishing Strategic Petroleum Reserves (SPR) in Pakistan.
The government selected international energy consultancy Wood Mackenzie to conduct the study after a competitive tender process that received four bids.
Officials briefed the minister on the study’s scope and objectives. The meeting also agreed on the assignment’s timeline and overall structure.
Government Focuses on Energy Security
Ali Pervaiz Malik said the government is pursuing reforms to strengthen Pakistan’s energy security. He stressed that energy security is closely linked to national security.
The minister said Pakistan must build stronger protection against external shocks and potential supply disruptions. He added that the recent Strait of Hormuz crisis highlighted the need for greater energy resilience.
The SPR initiative will help the government assess how Pakistan can improve its preparedness for future supply shocks. Malik also noted that the Economic Coordination Committee (ECC) has approved a world-class bonded scheme for major international oil companies.
Study Will Assess Phased Development Options
Malik said the government wants to make an informed, evidence-based decision before launching such a major strategic project.
He asked the consultants to develop a practical and implementable solution based on Pakistan’s specific requirements. The study will also examine whether Pakistan should develop its Strategic Petroleum Reserves in phases.
The Wood Mackenzie team said Pakistan should strengthen its energy security amid an evolving global energy landscape and recent supply disruptions.
What the Feasibility Study Will Cover
The study will examine several key areas, including:
- Technical feasibility and safety of proposed strategic storage facilities.
- International and regional benchmarks.
- Policy and regulatory requirements.
- Short-, medium- and long-term implementation options.
- Legal, financial and commercial arrangements.
- Possible public-private partnership models.
- Existing infrastructure that Pakistan could use for strategic storage.
- Capital expenditure and financing options.
- Implementation timelines and institutional responsibilities.
- The consultants will also assess connectivity and logistics requirements for the proposed storage facilities.
Steering Committee to Monitor Progress
The minister directed all relevant stakeholders to fully cooperate with Wood Mackenzie. He also asked them to provide the required data and technical input on time.
The government will form a steering committee to periodically review the study’s progress.
Christopher Darry, Chris Brown, Jordan Macdonald and Aamir Malik represented Wood Mackenzie at the meeting. Representatives from ARL, PIDE, GHPL, the Ministry of Maritime Affairs and Pakistan LNG Limited also attended.
