QUETTA: Pakistan’s Ministry of Petroleum has launched a feasibility study for establishing a modern oil city in Hub, Balochistan, aimed at developing the country into a major regional petroleum logistics and trading hub.
The proposed project highlights Balochistan’s growing role in Pakistan’s economic and energy development plans. If implemented, it would add another major infrastructure project to the province after Gwadar and projects linked to the China-Pakistan Economic Corridor (CPEC).
The federal government plans to transform the coastal area of Hub into an international-standard petroleum trading and storage hub. The feasibility study has been awarded to international consulting firm Technip.
Offshore Terminal and Oil Storage
The proposed oil city will include an offshore single-point mooring (SPM) facility designed to allow large oil tankers to load and unload petroleum cargo.
The facility is expected to strengthen the international trading role of Balochistan’s coastline and improve the country’s petroleum import and distribution infrastructure.
The project also envisages bonded storage facilities where international companies could store petroleum products without immediately paying applicable taxes and duties. The arrangement is expected to create opportunities for foreign investment in the petroleum sector.
Proposed Pipeline Network
Two dedicated pipelines have also been proposed to connect the offshore terminal with Pakistan’s existing petroleum supply network.
One pipeline would transport crude oil to industrial facilities in Karachi’s Keamari area, potentially supporting the city’s refining industry.
The second pipeline would transport petroleum products to Port Qasim and connect with the existing White Oil Pipeline network, helping further integrate the country’s petroleum distribution system.
Focus on Energy Security
The government says the project forms part of its broader strategy to strengthen and stabilise Pakistan’s energy supply chain and improve petroleum logistics.
Once completed, the infrastructure is expected to generate thousands of employment opportunities for local residents and stimulate commercial activity in Hub and surrounding coastal areas.
The project could also increase the economic significance of Balochistan’s coastal belt and give the province a greater role in Pakistan’s energy and trade strategy.
