ISLAMABAD: The Petroleum Division has launched a feasibility study for establishing Strategic Petroleum Reserves (SPR), selecting international energy consultancy Wood Mackenzie through a competitive tender process to assess options for strengthening the country’s energy security against future supply disruptions.
Federal Minister for Petroleum Ali Pervaiz Malik chaired the kick-off meeting for the study on Tuesday, where officials reviewed its scope and objectives and agreed on timelines and the overall framework for the assignment.
Wood Mackenzie was selected after four bids were received through the competitive tender process.
The initiative is aimed at assessing how strategic petroleum reserves could provide a stronger buffer against external supply shocks and improve the resilience of fuel supplies.
Ali Pervaiz Malik said energy security was intrinsically linked to national security and that strengthening supply resilience and reducing vulnerability to external disruptions remained a key government priority.
He said the recent Strait of Hormuz crisis had further highlighted the need to strengthen petroleum buffers and improve preparedness for potential supply disruptions.
The minister said the Strategic Petroleum Reserves initiative would help determine how the country could better protect itself against such shocks.
He also said the Economic Coordination Committee had already approved a world-class bonded scheme for large international oil players.
Malik said the feasibility study had been commissioned to provide the government with an evidence-based assessment before it moved ahead with a major strategic initiative.
He directed that the study should propose a practical and implementable solution suited to local requirements and determine the most appropriate way forward, including the possibility of developing Strategic Petroleum Reserves in phases.
The Wood Mackenzie team said the evolving global energy landscape and recent supply disruptions made it an appropriate time to strengthen energy security.
The consultancy said its assessment would focus on developing a practical solution based on the country’s specific requirements and circumstances.
The study will examine the technical feasibility, integrity, safety and operational requirements of proposed strategic storage facilities, along with international and regional benchmarks.
It will also assess policy and regulatory requirements and identify short-, medium- and long-term options for implementing the Strategic Petroleum Reserves programme.
Legal, regulatory, financial, commercial and institutional arrangements will form part of the assessment, including the possibility of using public-private partnership models.
Existing infrastructure that could potentially be used for strategic petroleum storage will also be evaluated, taking into account connectivity and logistics requirements.
The study will estimate capital expenditure, examine financing options and propose implementation timelines and institutional responsibilities for the phased development of SPR capacity.
Malik directed relevant stakeholders to provide Wood Mackenzie with the necessary data and technical input to ensure the study is completed within the agreed timeframe.
A steering committee will also be formed to periodically review progress on the initiative.
Wood Mackenzie was represented at the meeting by Vice President Christopher Darry, Director Chris Brown, Jordan Macdonald and Senior Vice President Aamir Malik.
Representatives of Attock Refinery Limited, Pakistan Institute of Development Economics, Government Holdings (Private) Limited, Ministry of Maritime Affairs and Pakistan LNG Limited were also present.
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