Pakistan eyes Gulf-backed oil reserve hub at Gwadar amid Strait of Hormuz tensions

Pakistan is encouraging oil producers from the Persian Gulf to establish crude reserve buffers at a planned Energy City near Gwadar Port, according to a report by The Express Tribune.

A Pakistani official told the publication that in the event of emergencies such as war, Pakistan would retain the first right to use the stored oil reserves.

The move comes as Pakistan currently lacks strategic crude reserves that could serve as an emergency buffer during supply disruptions.

Energy City planned at Gwadar Port

Pakistan plans to develop an Energy City at Gwadar Port that will include strategic oil reserves as well as LNG and LPG terminals.

According to the report, Kuwait has already expressed interest in establishing crude reserves at the proposed site.

Pakistan’s Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, has asked Kuwaiti officials to examine potential locations for crude oil, LPG and LNG storage facilities. The proposal also includes rental-based bonded storage infrastructure aimed at supporting regional energy trade and improving supply-chain efficiency.

Pakistan faces pressure from Middle East crisis

Pakistan has been affected by the ongoing crisis in the Middle East and has been negotiating with Iran to ensure cargo movement through the Strait of Hormuz.

The country has also been involved in mediation efforts between the United States and Iran in recent weeks.

Pakistan has long depended on term LNG supplies from Qatar. However, the conflict in the Middle East and the closure of the Strait of Hormuz disrupted Qatari LNG production and exports, intensifying Pakistan’s domestic energy challenges.

The disruption has contributed to power outages and fuel rationing across the country.

Qatari LNG shipments resume through Hormuz

Under a bilateral agreement between Pakistan and Iran, two vessels carrying Qatari LNG are currently en route to Pakistan after successfully crossing the Strait of Hormuz in recent days.

The development has provided temporary relief to Pakistan as it attempts to stabilise energy supplies amid regional uncertainty.