Pakistan asks Saudi Arabia for separate LPG supplies — The Express Tribune
Pakistan has asked Saudi Arabia to arrange separate supplies of liquefied petroleum gas (LPG) ahead of the winter season. Islamabad also offered Saudi companies investment opportunities in strategic oil storage facilities and the modernization of oil refineries, The Express Tribune reports.
Risks to gas imports
Pakistan relies heavily on LPG imports from Iran through the land border. The closure of the border crossing has raised concerns about fuel supplies during a period when domestic demand for gas traditionally increases. Disruptions around the Strait of Hormuz and security threats in the Red Sea have become additional risk factors for regional energy supplies.
These issues were discussed by Pakistan’s Federal Minister for Petroleum Ali Pervaiz Malik and Saudi Arabia’s Ambassador to Pakistan, Rajeh Tami Al Bugami. According to a statement by Pakistan’s ministry, the sides discussed LPG supplies, strategic oil reserves, refinery upgrades, as well as commercial cooperation in the mining, oil and energy sectors.
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Oil storage facilities and refinery modernization
Malik said Pakistan had approved a tax-neutral bonded warehouse model based on the practices of energy hubs in Fujairah and Singapore. Under this mechanism, Saudi companies will be able to build commercial oil inventories in Pakistan without local tax obligations.
The minister also presented a plan for a major oil storage and processing complex in the city of Hub in Balochistan. According to the ministry, the proposed complex is planned to be developed with consultative support from Technip Energies UK; it could receive very large crude oil tankers. Separately, Pakistan expects Saudi investment in its refinery infrastructure modernization program and transition to Euro-5 fuel standards.
The Pakistani side also discussed coordination with Saudi Aramco to increase crude oil purchases and arrange special LPG cargoes. Beyond energy, Islamabad is seeking Saudi investment in the Reko Diq copper-gold project in Balochistan, where Saudi Arabia had previously expressed interest in acquiring a 15% stake.
