Pakistan introduces study to establish strategic petroleum reserves

August 25, 2026 (MLN): Pakistan has initiated a feasibility study for establishing Strategic Petroleum Reserves (SPR), with international energy consultancy Wood Mackenzie selected to conduct the assessment following a competitive bidding process that attracted four proposals.

Federal Minister for Petroleum Ali Pervaiz Malik chaired the kick-off meeting, where officials reviewed the study’s scope, objectives, implementation timeline and proposed framework.

The minister said strengthening energy security remains a key government priority, noting that the resilience of energy supplies is closely linked with national security.

He stressed the need to reduce Pakistan’s exposure to external supply disruptions and strengthen the country’s capacity to withstand energy-related shocks.

The recent disruption surrounding the Strait of Hormuz, he noted, has further underscored the importance of developing adequate strategic buffers against potential supply interruptions.

In this regard, the Strategic Petroleum Reserves initiative will assess how Pakistan can improve its preparedness for future supply shocks. The Economic Coordination Committee (ECC) has already approved a bonded scheme for major international oil companies.

Ali Pervaiz Malik said the feasibility study is intended to provide the government with an evidence-based assessment before committing to a major strategic investment.

He called for a practical and implementable framework tailored to Pakistan’s requirements and said the study should also determine whether SPR capacity could be developed through a phased approach.

Wood Mackenzie representatives observed that the current global energy environment makes it an appropriate time for Pakistan to strengthen its energy security framework, particularly amid recent supply disruptions and changing international energy dynamics.

The study will evaluate the technical feasibility, safety, integrity and operational requirements of potential strategic storage facilities.

It will also benchmark international and regional SPR models while examining the policy, regulatory, legal, financial, commercial and institutional frameworks required for implementation.

The consultancy will assess both existing and potential infrastructure that could be utilized for strategic petroleum storage, including connectivity and logistics requirements.

It will also estimate capital expenditure, explore financing mechanisms, determine implementation timelines and identify institutional responsibilities for the phased development of SPR capacity.

The minister directed relevant stakeholders to provide Wood Mackenzie with the required data and technical assistance to ensure completion of the study within the agreed timeframe. A steering committee will also be established to monitor progress and periodically review the assignment.

Wood Mackenzie representatives Christopher Darry, Vice President; Chris Brown, Director; Jordan Macdonald; and Aamir Malik, Senior Vice President, attended the meeting.

Representatives from Attock Refinery Limited (ARL), Pakistan Institute of Development Economics (PIDE), Government Holdings (Private) Limited (GHPL), Ministry of Maritime Affairs and Pakistan LNG Limited (PLL) also participated.

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