ISLAMABAD: Pakistan has decided to encourage oil-producing countries to establish strategic oil reserves within a proposed “Energy City” at Gwadar Port, as part of a broader initiative aimed at strengthening national energy security and developing the country as a regional energy logistics hub.
According to official sources, the planned reserves would be stored in Pakistan and accessed during emergencies. “In case of situations such as war or supply disruptions, Pakistan will have the first right to utilise the oil reserves,” an official told The Express Tribune.
Kuwait has reportedly shown early interest in participating in the project by developing strategic buffer storage facilities in the proposed Energy City. A high-level government committee is currently identifying potential sites in Balochistan for the development of a new port and finalising the location for the Energy City project.
The initiative is part of a revived plan to develop an integrated energy hub at Gwadar, incorporating oil storage terminals along with liquefied natural gas (LNG) and liquefied petroleum gas (LPG) infrastructure. Earlier versions of the “oil city” concept at Gwadar did not materialise due to external opposition, according to officials.
Federal Minister for Maritime Affairs Junaid Anwar Chaudhry has invited Kuwait to invest in Pakistan’s coastal and energy logistics infrastructure, including storage facilities, bonded terminals, jetties, and port development projects.
During a meeting with the Kuwaiti ambassador, the minister outlined opportunities under the proposed “Energy City” and related port expansion plans, including a multipurpose terminal at Port Qasim aimed at increasing cargo handling capacity and strengthening Pakistan’s role as a regional maritime gateway.
Officials said Pakistan is seeking international partnerships, particularly with Gulf countries, to modernise its maritime sector and attract investment in fuel storage and energy transit infrastructure. The minister emphasised that Pakistani ports offer significant long-term potential for logistics, storage, and re-export operations.
Discussions also covered possible cooperation in storage facilities for crude oil, LPG, LNG, and refined petroleum products, with proposals for rental-based bonded storage systems to improve regional supply chain efficiency.
Kuwait has reportedly expressed interest in reviewing the proposed projects, particularly those linked to Energy City and port-based fuel storage infrastructure, with both sides agreeing to continue consultations.
Pakistan is also awaiting potential investment commitments from Saudi Arabia for oil refinery and storage projects at Gwadar, which had previously been delayed. Officials expressed optimism that renewed bilateral engagement could revive progress on the initiative.
The government has already formed a 12-member multi-agency committee under its long-term “Hundred Years Vision 2047–2147” to identify suitable locations for new deep-sea ports and support infrastructure along Pakistan’s coastline.
Officials said the Energy City would be designed to serve both domestic energy needs and international storage and re-export requirements, positioning Pakistan as a future hub for regional energy trade and maritime logistics.
Story by Zafar Bhutta
