Pakistan State Oil and Kuwait Petroleum have agreed to form a joint venture to increase Pakistan’s oil storage capacity.
The two companies will invest $350 million (€284 million) in developing additional infrastructure at Hub. According to Senator Muhammad Yousaf Baloch, the two companies have entered into an initial agreement, with a formal agreement due to be signed soon.
Oil will be imported to the new storage site via two large ships secured by Pakistan State Oil. Small vessels are normally used to ship crude oil into the country via Port Qasim. However, this creates congestion and one small hold-up can affect Pakistan’s entire oil supply chain.
Much of the country’s crude oil is stored at Karachi Port but Baloch believes the new tanks will provide Pakistan with an alternative location.
Pakistan State Oil has also revealed that it is looking to erect an oil refinery in Khyber Pakhtunkhwa (KP) that will handle crude oil produced in the area. ‘We will also be able to export oil to Afghanistan from the refinery planned in KP,’ Baloch is reported to have said.