Pakistan advances strategic oil reserve plan as four firms bid for feasibility study

The Petroleum Division has advanced work on Pakistan's strategic petroleum reserve initiative, with four firms submitting bids for a feasibility study as the government pushes ahead with measures to strengthen the country's fuel security and storage capacity, Business Recorder reported. 

The initiative follows directives issued by Prime Minister Shehbaz Sharif during a high-level meeting on April 22-23, 2026, to develop a comprehensive liquid fuel reserve framework, expand crude oil storage and improve energy security.

According to officials, Pakistan LNG Limited (PLL) has finalised and published the request for proposals for the feasibility study in local and international newspapers. The bidding process closed on July 1, attracting four participants.

The technical evaluation of bids is scheduled to conclude by July 17, while financial proposals are expected to be opened on July 27.

A technical committee reviewing the project has recommended hiring an international consultant to conduct a comprehensive feasibility study covering all aspects of establishing Strategic Petroleum Reserves.

Separately, the Petroleum Division has reviewed the existing Bonded Storage Policy with the assistance of KPMG and incorporated feedback from domestic and international stakeholders.

A summary containing proposed amendments has been circulated for consultation before being submitted to the Economic Coordination Committee.

The proposed changes are intended to make the policy tax-neutral, encourage foreign investment in storage infrastructure and re-export facilities, and position Pakistan as a regional energy storage hub.

The Petroleum Division has also proposed amendments to the Brownfield Refining Policy, requiring upgraded refineries to maintain crude oil inventories equivalent to 14 days of nameplate capacity, in addition to five days of crude cargoes at sea.

The Prime Minister had also directed the ministry to review oil marketing companies' storage requirements, assess unused storage facilities, examine the potential use of infrastructure at terminated independent power producer sites, and evaluate depleted gas wells for future storage.

Officials said these measures are aimed at improving Pakistan's resilience to supply disruptions and ensuring uninterrupted refinery operations.