Pakistan Proposes Strategic Petroleum Reserves as Up to 90% of Oil, LNG Imports Pass Through Hormuz

Pakistan's energy ministry is proposing to build strategic petroleum reserves and commercial storage through bonded terminals, refineries and oil marketing companies, according to a document reviewed by Reuters. The plan follows supply shocks provoked by the Iran war.

Pakistan relies on supplies through the Strait of Hormuz for up to 90% of its oil and liquefied natural gas imports and has no strategic petroleum reserves, leaving it exposed to disruptions. The document also calls for more oil and gas exploration and production, refinery upgrades and consolidation of the downstream sector, while the country's IMF lending program limits room for costly state-owned emergency stocks.