Govt Mulls for oil imports through pipelines

Pakistan is provoking alternatives for oil supply from Saudi Arabia and the United Arab Emirates (UAE) through pipelines if the Hormuz narrow closes due to Israel-Iran’s conflict.

Saudi Arabia has an existing network of oil pipelines, including the East-West pipeline (Petroline), which provides slow oil from the eastern province in the port of the Yanbu Red Sea. The UAE oil pipeline to Fujairah, which is also referred to as the Abu Dhabi (ADCOP) crude pipeline, is a strategic infrastructure project aimed at bypassing its close Hormuz and ensures safe oil exports.

Finance Minister Muhammad Aurangzeb on Monday presented the opening meeting of a high -level committee set up to monitor oil prices amid escalation in regional tensions.

Sources told Express Tribune that the oil department in a report said that the Strait of Hormuz supplies 20% of world crude oil and if Iran closes it, the supply of oil to the world could be affected, including Pakistan. It will be the worse case scenario when oil prices could reach $ 100 to $ 150 per barrel.

It was emphasized that there was no immediate threat of higher oil prices, and Pakistan also dealt with talks with global oil suppliers to secure smooth supplies.

Currently, abandoned power plants have an oven oil warehouses for up to one million tonnes. Experts indicate that the government should store oil in these warehouses. It has been suggested that the government can buy the warehouses as the energy sector plans to sell them in fragments.

According to a statement, in response to the evolving geopolitical situation following Israel’s recent attack on Iran and the resulting volatility in international oil markets, Prime Minister Shehbaz Sharif was set up a high -level committee to monitor the pricing and dynamics of oil products. The Commission is head of the Minister of Finance and includes senior representatives from basic federal ministries, regulators and experts in the energy sector.