HUB: Modern Oil City Project in Hub Balochistan has officially entered its feasibility study phase, initiated by the Ministry of Petroleum to transform Pakistan into a major petroleum logistic and trading hub.
According to details, the proposed oil city will feature offshore single-point mooring facilities capable of accommodating large oil tankers.
The project will incorporate extensive bonded storage facilities, allowing international companies to store petroleum products without immediate duty and tax payments.
Furthermore, the offshore terminal is proposed to be connected to the national supply network through two new dedicated pipelines.
One pipeline will transport crude oil to the Keamari installations, while the second will link petroleum products to Port Qasim and the White Oil Pipeline network.
Note on Oil and Gas Reserves in Pakistan:
Pakistan possesses significant potential in domestic hydrocarbon exploration, yet its indigenous oil and gas reserves remain critically underutilized relative to growing national energy demands.
Over the decades, basins across Sindh, Balochistan, Punjab, and the Khyber Pakhtunkhwa provinces, alongside offshore areas in the Arabian Sea, have yielded crucial natural gas and crude oil deposits. Natural gas has historically served as the backbone of Pakistan’s energy infrastructure, powering electricity generation, domestic households, and major industrial sectors.
However, mature fields are experiencing natural depletion rates, widening the deficit between domestic production and soaring consumption.
To bridge this widening energy gap, successive governments and exploration companies have ramped up onshore and offshore drilling activities, seeking fresh reservoirs to reduce heavy reliance on expensive imported petroleum.
Despite these ongoing exploration efforts, regulatory hurdles, security challenges in remote regions, and immense capital requirements have occasionally slowed down rapid resource extraction.
Consequently, Pakistan remains heavily dependent on foreign imports to satisfy its daily energy requirements, placing severe fiscal strain on the national economy and foreign exchange reserves.
Enhancing domestic exploration frameworks, upgrading refining capacities, and integrating strategic infrastructure—such as the Modern Oil City Project in Hub Balochistan—are therefore considered vital steps toward securing long-term energy independence.
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Ultimately, unlocking the full economic value of domestic energy assets and strengthening regional trade corridors remain essential for stabilizing Pakistan’s macroeconomic future, ensuring that the foundational goals of the Modern Oil City Project in Hub Balochistan are successfully realized.
