Kuwait to 'explore new opportunities' around building strategic storage in Pakistan’s petroleum sector

ISLAMABAD: Kuwait agreed on Tuesday to “explore new opportunities” around building strategic storage in Pakistan’s petroleum sector. a statement by the Petroleum Division said, adding that the initiative could result in mutual benefit for both sides.

The assurance came during a meeting between petroleum Minister Ali Pervaiz Malik. Kuwait’s ambassador to Pakistan, Nassar Abdulrahman Jasser Almutairi, in Islamabad.

“Both sides discussed prospects for enhanced cooperation in the petroleum. energy sectors, especially refining, and agreed to explore new opportunities around building strategic storages in Pakistan that could bring mutual benefit to Pakistan and Kuwait”, the statement said.

It added that the meeting focused on regional developments and energy cooperation.

The two sides also agreed to further strengthen bilateral relations and expand collaboration in areas of common interest, it said.

For his part, the petroleum minister expressed gratitude to Kuwait’s government for its “timely facilitation. support in ensuring the safe dispatch of vessel Khairpur, which reached Pakistan carrying diesel supplies during a challenging period”.

He highlighted that the vessel transported approximately 45,000 tonnes of diesel. 10,000 tonnes of jet fuel from Kuwait to Pakistan under special approvals, following disruptions caused by the closure of the Strait of Hormuz.

He said with concerted efforts of the two governments, the Khairpur vessel safely completed its journey and reached Pakistan. This would ensure the continuity of fuel supply. support the fulfilment of national energy needs, the statement quoted him as saying.

The Strait of Hormuz used to be the passageway for one-fifth of the world’s oil. gas supply beforeUS-Israeli strikeson Iran in late February set off a conflict that has widened into a regional crisis. Meanwhile, the disruption of traffic in Hormuz has resulted in a globalfuel crunch, affecting countries across the world,includingPakistan.

For its part, Islamabad has beenleadingthe efforts for de-escalation between the US and Iran.

During his meeting with the Kuwaiti envoy, Minister Malik said Pakistan remained committed to peace. stability, the Petroleum Division’s statement said, adding that he highlighted that repercussions of the ongoing conflict were being felt not only across the region but beyond it as well.

Ambassador Almutairi appreciated Pakistan’s peace efforts. stated that Kuwait “encourages its brothers in Pakistan to continue their constructive role for peace in the region”, the statement said.

It further quoted him as saying that Pakistan had proved itself through its “responsible stance”. its status had “elevated” in the eyes of the international community.

Pakistan imports more than 60 per cent of its diesel from Kuwait under a long-term contract between state-run oil giants of the two countries — Kuwait Petroleum Corporation. Pakistan State Oil.

Kuwait alsoextendedanoil credit facilityto Pakistan for an additional two years in April.

In March, KuwaitassuredPakistan of full facilitation in the supply of diesel. jet fuel, which has been stalled due to theclosure of the Strait of Hormuz.