Pakistan plans strategic oil reserves at Gwadar Energy City, seeks Gulf investment

Pakistan has decided to encourage oil-producing countries to establish strategic oil reserves at a planned Energy City near Gwadar Port as part of efforts to strengthen energy security and position the country as a regional energy and logistics hub, according to a news report. 

Officials said the proposed reserves would allow Pakistan first access to the stored oil during emergencies such as wars or supply disruptions.

According to officials, Kuwait has shown interest in building strategic oil buffers under the proposed initiative, while the government is also awaiting progress on potential investment from Saudi Arabia in oil reserves and refinery infrastructure at Gwadar.

The development comes as a multi-agency committee works on identifying locations for new ports in Balochistan as well as land for the proposed Energy City project.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry discussed the proposal during a meeting with Kuwaiti Ambassador Nassar Abdulrahman Jasser Al-Mutairi, where investment opportunities in energy logistics and maritime infrastructure were presented.

According to a statement, the maritime affairs minister invited Kuwait to invest in fuel storage facilities, bonded terminals, jetty construction, port infrastructure and the planned Energy City initiative aimed at creating integrated energy and logistics hubs near key ports.

The minister also proposed projects related to storage and handling of liquefied petroleum gas, liquefied natural gas, crude oil and white oil products, alongside rental-based bonded storage facilities to support regional trade and energy supply chains.

Among the projects discussed was a proposed multipurpose terminal at Port Qasim, where additional terminals and storage infrastructure are planned to expand cargo handling capacity.

Officials said discussions also covered cooperation in infrastructure development and jetty construction, with the government offering facilitation to potential Kuwaiti investors.

The Kuwaiti ambassador expressed interest in reviewing projects linked to the Energy City and fuel storage infrastructure, while both sides agreed to continue consultations on maritime-sector cooperation.

Earlier this year, Chaudhry announced plans for the Pakistan Maritime Energy City under the government’s “Hundred Years Vision 2047-2147” initiative.

A 12-member committee has been constituted to identify suitable sites for three or four new deep-sea ports and related infrastructure along Pakistan’s coastline.

Officials said the proposed Energy City would allow international stakeholders to store oil, LNG and LPG for local consumption as well as re-export purposes, while remaining integrated with Pakistan’s port infrastructure.