Petroleum division kicks off feasibility study on strategic reserves

Petroleum division kicks off feasibility study on strategic reserves.

Key points

• Khaleeq Kiani Published August 25, 2026 Updated August 25, 2026 06: 42pm.
• Wood Mackenzie Vice President Christopher Darry, Director Chris Brown, Principal Consultant Jordan Macdonald and Senior Vice President Aamir Malik attended the session.
• Federal Minister for Petroleum Ali Pervaiz Malik today chaired the kick-off session with Wood Mackenzie.
• Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.
• In July, Prime Minister Shehbaz Sharif directed authorities to growth the country's strategic petroleum reserves as a cabinet committee approved amendments to the oil refining policy.

Khaleeq Kiani Published August 25, 2026 Updated August 25, 2026 06: 42pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

ISLAMABAD: The administration on Tuesday kicked off a feasibility study regarding strategic petroleum reserves (SPR) through international consultancy firm Wood McKenzie.

Federal Minister for Petroleum Ali Pervaiz Malik today chaired the kick-off session with Wood Mackenzie. It was selected to undertake the study after a competitive tender process that attracted four bids.

Wood Mackenzie Vice President Christopher Darry, Director Chris Brown, Principal Consultant Jordan Macdonald and Senior Vice President Aamir Malik attended the session. Representatives of Attock Refinery Limited, the Pakistan Institute of Development Economics, Administration Holdings (Private) Limited, the Ministry of Maritime Affairs and Pakistan LNG Limited were additionally present.

"The minister was briefed on the scope and objectives of the study, following which the meeting discussed and agreed on the timelines and overall architecture for the assignment, " an official statement by the information ministry remarked.

Notably, the minister highlighted that the administration was pursuing reforms and initiatives to advance Pakistan's energy security, recognising that energy security was intrinsically linked to national security. He termed ensuring the resilience of energy supplies and reducing vulnerabilities to external shocks a key priority of the administration, according to the statement.

He remarked the recent crisis in the Strait of Hormuz had further magnified the need to strengthen Pakistan's buffers and build greater resilience against supply disruptions.

"The SPR initiative is therefore an important step towards assessing how the country can strengthen its preparedness for potential supply shocks, " he remarked, noting that the Economic Coordination Committee (ECC) had already approved a "world-class bonded scheme" for substantial international oil players.

Notably, the administration on Monday formally approved allowing foreign fuel suppliers to set up bonded storage facilities in Pakistan at their own expense for multiple purposes, including re-export and supplies to the local market.

Malik remarked the purpose of commissioning the study was to enable the administration to create an informed decision based on evidence before embarking on such a major strategic initiative.

Notably, the minister additionally emphasised that the study should provide a "pragmatic and implementable" solution suited to the country's requirements and assist to determine the most appropriate way forward, the statement noted. This would include the possibility of pursuing SPR development in a phased manner.

According to the statement, the Wood Mackenzie team termed it the "right time" for Pakistan to work on energy security, particularly in view of the evolving global energy landscape and recent supply disruptions.

Meanwhile, the team remarked the study would focus on developing a pragmatic solution based on Pakistan's specific requirements and circumstances.

"The study will cover technical feasibility, integrity, safety and operational assessment of proposed strategic storage facilities; international and regional benchmarks; policy and regulatory requirements; and short-, medium- and long-term implementation options, " the statement remarked.

"It will also examine legal, regulatory, financial, commercial and institutional arrangements, including possible public-private partnership models."

Notably, the study will assess existing infrastructure that could potentially be utilised for strategic storage, taking into account connectivity and logistics requirements, the statement observed.

It will additionally provide "estimates of capital expenditure, financing options, implementation timelines and institutional responsibilities for phased development of SPR capacity" in Pakistan.

Meanwhile, the minister directed all relevant stakeholders to extend full cooperation to Wood Mackenzie, ensuring the timely provision of required data and input to allow the completion of the study within agreed timelines and "provide a sound basis for future policy decisions". He continued that a steering committee will be formed to periodically review progress on this matter.

Pakistan has been planning to boost domestic storage for crude oil and refined products to growth its energy security, it emerged in May. With no strategic petroleum reserves, the country has been left exposed to oil supply shocks resulting from the US-Iran war that has choked supplies through the Strait of Hormuz.

Khaleeq Kiani is an Islamabad-based reporter for Dawn, specializing in political economy, governance, business, finance, macroeconomics and energy. He can be discovered on X at @khaleeqkiani.

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