Pakistan Turns to Saudi Arabia for LPG Supplies as Winter Demand Approaches
Pakistan is looking to strengthen its energy security by seeking dedicated liquefied petroleum gas (LPG) shipments from Saudi Arabia ahead of the upcoming winter season. The move comes amid concerns over potential disruptions to traditional fuel supply routes and rising seasonal demand.
According to a report by The Express Tribune, Pakistan has approached Saudi officials to discuss separate LPG cargoes while offering investment opportunities in its oil storage and refining industries.
Supply disruptions increase pressure on Pakistan
Pakistan has traditionally depended on LPG imports from Iran through its land border. However, the closure of a key border crossing has raised concerns about the reliability of these supplies.
The situation is particularly important as household and commercial gas consumption typically increases during colder months. Meanwhile, wider regional shipping risks, including tensions affecting the Strait of Hormuz and security concerns in the Red Sea, add further uncertainty to energy transportation.
The issue was discussed during a meeting between Pakistan’s Federal Minister for Petroleum, Ali Pervaiz Malik, and Saudi Arabia’s Ambassador to Pakistan, Rajeh Tami Al Bugami.
Both sides reviewed opportunities for cooperation in LPG supplies, strategic petroleum reserves, refinery development and broader energy-sector investment.
Saudi investors offered opportunities in Pakistan’s energy sector
Alongside its request for additional LPG supplies, Islamabad is seeking to attract Saudi investment into major energy infrastructure projects.
Pakistan has presented a tax-neutral bonded warehouse framework that would allow Saudi companies to maintain commercial oil inventories in the country without local tax obligations under the proposed mechanism.
The initiative draws inspiration from established energy trading and storage hubs, including Fujairah in the United Arab Emirates and Singapore.
Another proposal involves developing a large-scale oil storage and processing complex in Hub, located in Balochistan. The project is expected to receive technical consulting support from Technip Energies UK and is designed to accommodate very large crude oil tankers.
Refinery upgrades and wider economic cooperation
Pakistan is also seeking Saudi participation in upgrading its domestic refining capacity and moving towards Euro-5 fuel standards.
Discussions have included closer coordination with Saudi Aramco to increase crude oil purchases and arrange dedicated LPG shipments.
The potential partnership extends beyond conventional energy. Islamabad is also interested in Saudi investment in the Reko Diq copper and gold mining project in Balochistan, where Saudi Arabia has previously shown interest in acquiring a 15% stake.
A strategic partnership with long-term implications
Securing additional LPG supplies from Saudi Arabia could help Pakistan diversify its energy imports and reduce exposure to disruptions affecting existing supply channels.
For Saudi Arabia, the proposed cooperation offers opportunities to expand its commercial presence in South Asia through oil trading, storage infrastructure and industrial investment.
Whether the discussions translate into long-term supply agreements and major investment commitments remains to be seen. However, the initiative highlights Pakistan’s growing focus on diversifying energy partnerships and strengthening its fuel supply network before winter demand rises.
Source: The Express Tribune, as reported by UA.NEWS.
