Petroleum division kicks off feasibility study on strategic reserves

Dawn reported that the government has started a feasibility study on strategic petroleum reserves (SPR), with the international consultancy Wood Mackenzie chosen after a competitive tender that drew four bids. Petroleum Minister Ali Pervaiz Malik chaired the kick-off meeting on Tuesday, where the schedule and broad structure of the assignment were settled. Representatives of Attock Refinery Limited, the Pakistan Institute of Development Economics, Government Holdings, the Ministry of Maritime Affairs and Pakistan LNG Limited also attended.

Malik said the study is meant to give the government an evidence-based footing before any major strategic move, and that a phased build-out of SPR capacity is among the options. He tied energy security to national security and cited the recent crisis in the Strait of Hormuz as a reason to build stronger buffers against supply disruptions.

The study will examine technical feasibility, safety and operational aspects of proposed storage, international benchmarks, policy requirements and possible public-private partnership models. It will also estimate capital costs and financing, and identify existing infrastructure that could be used for storage. The minister added that a steering panel will track progress at regular intervals, and on Monday the government also approved bonded storage facilities that foreign fuel suppliers may build in Pakistan at their own cost.