Pakistan plans oil reserves, storage push as Hormuz constraints expose vulnerabilities

Pakistan plans to boost domestic storage ​for crude oil and refined products to increase its energy security, according to a government document that was ‌shared with oil producers and some of the world's leading trading firms. Despite depending on supplies through the Strait of Hormuz for up to 90% of its oil and liquefied natural gas imports, Pakistan has no strategic petroleum reserves. That has left it exposed to supply shocks provoked by the Iran war, even as its ​lending programme with the International Monetary Fund (IMF) limits room for costly state-owned emergency stocks. According to the document reviewed by Reuters, ​the energy ministry is proposing to build strategic petroleum reserves as well as commercial storage through bonded ⁠terminals, refineries and oil marketing companies. It is also pushing for more oil and gas exploration and production, upgrades to its ​refineries and a consolidation of its downstream sector.