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Malik seeks Saudi Aramco LPG and Hub storage investment

Petroleum Minister Ali Pervez Malik asked Riyadh for dedicated LPG cargoes and storage investment after Iran border supply cuts raised winter fuel worries.

Zaviya Desk

· 3 min read

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Pakistan has sought Saudi Arabia’s help to secure liquefied petroleum gas (LPG, the bottled cooking and heating fuel many households use) and invited investment in oil storage and refinery upgrades, as regional shipping risks and a disrupted Iran land route tighten supplies before winter.

Federal Minister for Petroleum Ali Pervez Malik raised the requests with Saudi Arabia’s ambassador to Pakistan, Dr Rajeh Tami Albugamy, according to a petroleum ministry statement. The meeting covered strategic oil storage, refinery modernisation, LPG supplies, and wider commercial cooperation in mining, petroleum and energy.

Why LPG supplies are under strain

Pakistan has depended heavily on LPG brought in from Iran across the land border. Closure of that crossing has raised concern that domestic gas demand will outpace available fuel when winter arrives and heating needs climb.

Islamabad has therefore approached Riyadh for dedicated LPG shipments. Officials also pointed to disruption around the Strait of Hormuz—the narrow sea lane for much of the Gulf’s oil and gas trade—and security risks in the Red Sea, which have added to worries about regional energy flows. Malik discussed coordination with Saudi Aramco, the kingdom’s state energy company, to raise crude oil purchases and arrange those dedicated LPG cargoes. He thanked Saudi authorities at Yanbu port for prioritising crude shipments to Pakistan during recent global market disruptions.

Storage, Hub and a tax-neutral oil hub pitch

The episode has also underlined Pakistan’s limited strategic petroleum storage—reserves kept for emergencies and supply shocks. The government is seeking investment from Middle Eastern partners, including Saudi Arabia and Kuwait, to build more storage.

Malik told the ambassador that Pakistan has approved a tax-neutral bonded policy modelled on international energy hubs such as Fujairah and Singapore. Under that framework, Saudi firms could hold commercial oil stocks in Pakistan without local tax liabilities. He argued the arrangement could ease maritime transit risks tied to the Strait of Hormuz and the Bab el-Mandeb Strait while opening access to Asian markets, and that storage on Pakistani soil would give Saudi Arabia more flexibility in supply routes.

The minister also described plans for a large petroleum storage and refining complex at Hub in Balochistan, with guidance from Technip Energies UK. The site is meant to handle very large crude carriers (VLCCs)—the biggest oil tankers—and to support a regional energy corridor towards Central Asian and Chinese markets. He highlighted a refinery upgrade programme aimed at modernising plants, improving efficiency and moving to Euro 5 fuel standards (cleaner petrol and diesel with lower emissions).

Mining, visas and what comes next

Pakistan is also seeking Saudi investment in the multibillion-dollar Reko Diq copper and gold project in Balochistan. Saudi Arabia has previously shown interest in a 15% stake. Malik invited Saudi Vice Minister of Mining Khalid Al-Mudaifer to the Pakistan Minerals Investment Forum in Islamabad on 12–13 November.

The ambassador restated Riyadh’s commitment to ties with Islamabad and said the two countries stand together in all circumstances. He announced that the Saudi embassy in Islamabad has introduced same-day processing of visa applications for Pakistani citizens to ease travel and business links. Both sides said their defence and strategic partnership underpins wider economic cooperation.

Aasan alfaaz mein

Pakistan ne Saudi Arab se winter se pehle LPG—cooking gas—ki alag shipments mangin hain. Iran border se gas aana band hone se supply ki fikar badh gayi hai. Sath hi oil storage aur Hub mein refinery investment ki baat ho rahi hai. Agar yeh deals chal niklein to gharoun ki gas aur fuel supply zyada mehfooz ho sakti hai, lekin asar waqt aur deals par depend karega.

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FAQ

Winter demand for gas usually rises, and LPG imports through the Iran land border have been disrupted, so Islamabad wants dedicated Saudi cargoes.

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