Pakistan is working on plans to develop an integrated oil city at Hub in Balochistan, featuring an offshore Single Point Mooring facility, dedicated crude oil and petroleum pipelines, and large bonded storage complexes, with the aim of turning the area into a major petroleum logistics and trading hub.
The proposed project is designed to increase Pakistan’s capacity to handle large crude oil and petroleum product vessels, easing pressure on Karachi and Port Qasim, where existing port limitations restrict the berthing of very large ships. The government has hired consultancy firm Technique to carry out a basic feasibility study, which is expected to be completed within two months.
How the Hub Oil City Would Work
Under the proposal, an offshore Single Point Mooring facility would be built in deep water, allowing large crude oil tankers and vessels carrying finished petroleum products to unload their cargo without entering shallow port facilities. The SPM would connect to the mainland through two dedicated pipelines, one transporting imported crude oil to KPT’s Kemari facilities and the other carrying finished petroleum products to Port Qasim.
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Why Strategic Petroleum Storage Matters for Pakistan
The Hub oil city is also linked to the government’s renewed customs bonded storage policy, under which petroleum companies and international traders could store imported products without immediately paying applicable duties and taxes. Bonded petroleum storage is also being considered at other locations, including Port Qasim, Kemari, Gwadar, Kot Addu, Machike, and Faisalabad, with Gulf-based companies reportedly showing strong interest in developing storage facilities at several strategic locations.
Separately, Pakistan is also developing a framework for Strategic Petroleum Reserves to strengthen energy security and reduce exposure to disruptions in international oil supplies. Consultancy firm Wood Mackenzie has been tasked with a comprehensive study covering the technical, financial, commercial, legal, and institutional requirements for establishing such reserves, along with international and regional models and potential public-private partnership structures.
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