ISLAMABAD: Pakistan LNG Restricted (PLL), the nation’s central procurement company for liquefied pure fuel, has commissioned a examine to develop strategic petroleum reserves as a part of efforts to strengthen nationwide vitality safety.
PLL has earmarked funds for the mission out of the procurement deliberate for fiscal yr 2026-27 and plans to make use of a part of the allocation to rent consultants for the examine, in keeping with official paperwork.
The consultancy will design a phased framework for a Strategic Petroleum Reserve (SPR) aimed toward bolstering crude oil provide safety, emergency response functionality and long-term vitality resilience.
The examine will assess demand and provide tendencies for crude oil and refined merchandise over the subsequent 25 years, from 2026 to 2050, and establish potential gaps.
Consultants may also benchmark Pakistan’s wants in opposition to worldwide fashions, reviewing practices in at the least three oil-importing international locations with established reserves. Areas of focus embrace governance buildings, authorized frameworks, working fashions, emergency launch mechanisms and financing preparations.
Infrastructure necessities shall be a key part, with evaluations of current storage amenities, potential repurposing of furnace oil tanks, and suitability of underground caverns or above-ground storage terminals.
The examine may also look at capital prices, financing choices, and dangers akin to geopolitical disruptions and maritime vulnerabilities. A phased implementation roadmap shall be developed, beginning with crude oil storage and doubtlessly increasing to subtle merchandise.
The task is predicted to be accomplished inside 4 months of contract signing.
Pakistan’s reliance on imported oil and LNG, primarily routed by way of the Center East, has left the nation uncovered to produce shocks. Current volatility in international vitality markets, together with disruptions linked to the closure of the Strait of Hormuz and US naval exercise within the area, has underscored the urgency of constructing reserves.
On Might 6, Pakistan floated a young to purchase spot LNG cargoes amid fuel shortages however rejected bids days later with out rationalization. The transfer adopted provide disruptions from Qatar, the nation’s long-term LNG provider.
A examine by the Pakistan Institute of Growth Economics warned {that a} three-month closure of the Strait of Hormuz may push international oil costs to $150 per barrel, elevating Pakistan’s month-to-month import invoice to as a lot as $4.5 billion and driving inflation from 7 p.c to 17 p.c.
