Pakistan invites Saudi investment in oil storage, refinery upgrade

October 30, 2026 (MLN): Pakistan and Saudi Arabia have agreed to deepen collaboration on oil storage, refinery modernization and energy security, as Islamabad invited Saudi firms to build commercial crude storage in the country under a newly cleared bonded storage policy that carries no tax burden.

Petroleum Minister Ali Pervaiz Malik put the proposal to Saudi Ambassador Dr Nawaf bin Said Al-Malki during a meeting on widening ties across minerals, petroleum and energy, according to an official statement.

Ali Pervaiz Malik argued that storage in Pakistan would give Riyadh an alternative to shipping lanes vulnerable to disruption near the Strait of Hormuz and the Bab el-Mandeb Strait, while placing its oil closer to Asian buyers.

He said Islamabad is also drawing up plans for a major storage and refining hub at Hub, Balochistan, which could help position Pakistan as a regional energy gateway.

The site is being designed to berth Very Large Crude Carriers (VLCCs), enabling bigger cargoes to be unloaded.

The minister expressed gratitude to Saudi authorities for giving Pakistan-bound crude loadings priority at Yanbu on the Red Sea.

Talks also covered extra crude volumes from Saudi Aramco and dedicated liquefied petroleum gas (LPG) cargoes for Pakistan, including larger winter deliveries when household gas consumption peaks.

On refining, Ali Pervaiz Malik said the country’s upgrade drive offers room for Saudi capital and joint ventures.

The plan seeks to modernize refineries, raise efficiency and move the country to Euro-V fuel standards.

The Saudi envoy said the defence and energy partnership between the two states is meant to support peace, stability and economic growth in the region.

He said the kingdom places great value on its long relationship with Pakistan and would remain by its side in hard times.

He also said Saudi Arabia has begun processing visa applications from Pakistani nationals on the same day, which he expects to help business, cultural and people-to-people exchanges.

In a separate invitation, Ali Pervaiz Malik asked Saudi Deputy Minister for Mining Affairs Khalid Al-Mudaifer to take part in the Pakistan Minerals Investment Forum, to be held in Islamabad on November 12 and 13.

Both sides restated their intent to expand investment and mutually beneficial partnerships in energy, petroleum and minerals.

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