Chevron eager to establish fuel storage facility in Pakistan

Chevron Energy Joint, a US-based company, has expressed its interest in storing and selling petroleum products in Pakistan and abroad through public or private bonded warehouses.

The News reported, quoting official sources from the Ministry of Energy, that Chevron Energy is the first foreign firm that has shown interest in fuel trade through bonded warehouses since the policy was announced on September 1, 2023.

Chevron’s initial interest is focused on utilizing warehouses in the Karachi Port Trust (KPT) area.

The policy enables foreign suppliers to store not only crude oil but also petroleum products in Pakistan’s ports and various locations throughout the country, aiming to ensure a consistent and sustainable fuel supply. This policy is designed to prevent potential fuel availability crises in the future.

Under the policy guidelines, foreign suppliers or their registered subsidiaries are permitted to maintain an inventory of crude and petroleum products in bulk form.

This can be done in their private bonded warehouses or customs public bonded warehouses, without requiring foreign exchange remittances. The stored products can then be sold to local buyers or re-exported to other foreign countries.

Foreign suppliers also have the option to establish their registered business or operate through a subsidiary company registered in Pakistan. Such entities must maintain bank accounts in the country and adhere to relevant Pakistani laws for their business activities.

Furthermore, these subsidiaries can develop their dedicated storage infrastructure and utilize customs public bonded warehouse facilities for storing crude oil and petroleum products, following the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules of 2016.

Consignees will also have the option to establish their dedicated storage infrastructure and utilize customs public bonded warehouse facilities for storing crude oil and petroleum products, either on a rent basis located around port premises or at various locations in Pakistan.