KARACHI (The Thursday Times) — Kuwait Petroleum Corporation (KPC) has agreed to use Pakistan’s storage and port facilities to supply petroleum products to the domestic market and re-export them to the region, Pakistan State Oil (PSO) said on Thursday, a step toward Islamabad’s plan to turn the country into a regional fuel distribution hub.
“KPC will utilize Pakistan’s storage and port facilities under the Government of Pakistan’s recently revised Customs Bonded Storage Policy, which offers a more facilitative framework for international suppliers,” PSO said in a statement. “The products will cater to domestic sales and re-exports to regional markets.”
The arrangement falls under a policy Pakistan approved about three months ago, letting foreign suppliers hold petroleum products in customs-bonded facilities for local sale or re-export. The policy followed disruptions to oil supplies through the Strait of Hormuz earlier this year, as part of a wider push to strengthen the country’s energy security.
PSO did not say which facilities KPC would use, the volumes involved, or when the arrangement would begin.
A fifty-year partnership
The agreement was reached during a PSO delegation’s visit to Kuwait, led by chief executive Jowad Ahmed Cheema, who met KPC’s chief executive and deputy chairman, Sheikh Nawaf Saud Al-Sabah, and the corporation’s managing director for international marketing, Sheikh Khaled Ahmad Al-Sabah, who also heads the Kuwait Oil Tanker Company.
Beyond the storage arrangement, PSO and KPC agreed to continue their longstanding gasoil, or diesel, and jet fuel supply arrangements, improving the commercial terms in line with current market conditions. The two sides also agreed to explore expanding Kuwaiti exports to Pakistan to include motor gasoline and petrochemicals, along with cooperation on base oil supplies and lubricant marketing.
They further discussed potential KPC investments in Pakistan’s energy sector, including gas, refining, storage infrastructure, shipping and logistics.
“KPC’s interest in Pakistan’s storage and port infrastructure presents opportunities to strengthen energy security, facilitate regional trade and attract investment,” Cheema said. “PSO is committed to translating these discussions into tangible outcomes over the next fifty years.”
Sheikh Khaled Ahmad Al-Sabah described the partnership with PSO as one of the most valued in KPC’s international portfolio, reflecting the longstanding relationship between Kuwait and Pakistan.
PSO and KPC marked fifty years of uninterrupted gasoil and jet fuel supply to Pakistan in August, and PSO has invited KPC’s senior management to Pakistan in early 2027 as part of continued celebrations of the partnership.
Kuwait’s role in Pakistan’s energy security
Pakistan imports more than 60 per cent of its diesel requirements from Kuwait under its long-term agreement with KPC, making Kuwait one of the country’s most important energy partners. In May, Kuwait helped facilitate the safe passage of the vessel Khairpur, carrying about 45,000 tonnes of diesel and 10,000 tonnes of jet fuel to Pakistan, after regional shipping disruptions raised concerns over fuel availability.
