Pakistan, Saudi Arabia Eye Strategic Oil Storage, Refinery Upgrades
Islamabad: Pakistan and Saudi Arabia have pledged to strengthen strategic energy cooperation, focusing on oil storage, refinery upgradation, crude oil supplies and LPG shipments.
Federal Minister for Petroleum Ali Pervaiz Malik held a meeting with the new Ambassador of Saudi Arabia to Pakistan H.E. Dr. Rajeh bin Tami Al-Baqami to discuss opportunities for strengthening bilateral cooperation in the mining, petroleum and energy sectors, including strategic oil storage, refinery upgradation, LPG supplies and facilitation of commercial engagement.
Read More: Iran Rejects Saudi Claims on Houthi Attacks
The Minister welcomed the longstanding strategic partnership between Pakistan and Saudi Arabia and conveyed that, during his recent visit to Riyadh, he had conveyed to His Royal Highness Prince Abdulaziz bin Salman Al Saud the leadership’s special sentiments of solidarity and affection for the Saudi people. He said Pakistan deeply values its historic relationship with Saudi Arabia and remains committed to expanding cooperation across strategic sectors.
The Minister informed the Ambassador that Pakistan has approved a tax neutral bonded policy, benchmarked against international energy hubs such as Fujairah and Singapore. Under this framework, Saudi companies can establish commercial oil reserves in Pakistan without local tax liabilities, offering an opportunity to diversify maritime transit risks associated with the Strait of Hormuz and Bab Al Mandeb Strait while facilitating access to Asian markets. He highlighted that strategic oil storage facilities in Pakistan would provide Saudi Arabia with greater flexibility in managing supply routes and accessing regional markets.
He further highlighted Pakistan’s plans to develop a major petroleum storage and refining complex at Hub, Balochistan, under guidance of Technip Energies UK. The proposed facility, supported by the Prime Minister and the Chief of Defence Forces, will have the capacity to accommodate Very Large Crude Carriers and strengthen Pakistan’s potential as a regional energy corridor serving Central Asian and Chinese markets.
The Minister also highlighted the investment opportunities offered by Pakistan’s ongoing refinery upgradation programme, aimed at modernising domestic refining infrastructure, improving operational efficiency and transitioning towards Euro 5 fuel standards. He said the programme offers significant opportunities for Saudi investment and participation in Pakistan’s refining sector.
Appreciating Saudi Arabia’s support during recent global market disruptions, the Minister thanked the Saudi authorities at Yanbu port for prioritising crude oil shipments to Pakistan. He also discussed coordination with Saudi Aramco to explore expanded procurement of crude oil cargoes and dedicated LPG shipments to support Pakistan’s energy requirements, particularly in view of the anticipated increase in domestic gas demand during the winter season.
Both sides underscored that the strong defence and strategic partnership between Pakistan and Saudi Arabia provides a foundation for broader regional peace, stability and economic cooperation. Ambassador Dr. Rajeh bin Tami Al-Baqami reiterated Saudi Arabia’s deep appreciation for Pakistan’s longstanding support, stating that the two countries stand together in all circumstances. He emphasised that their defence and energy cooperation frameworks are aimed at promoting peace, stability and economic growth across the region.
The Saudi Ambassador also announced that the Embassy of Saudi Arabia in Islamabad has introduced same day processing of visa applications for Pakistani citizens to facilitate travel and strengthen business, cultural and people to people exchanges.
The Minister also invited Saudi Arabia’s Vice Minister of Mining Excellency Khalid al-Mudafier to participate in the Pakistan Minerals Investment Forum scheduled to be held in Islamabad on November 12 and 13, highlighting further opportunities for cooperation and investment in Pakistan’s minerals sector.
Both sides expressed their commitment to further strengthening the longstanding brotherly relationship through enhanced cooperation, investment and mutually beneficial partnerships in the energy and petroleum sectors.
