Saudi Arabia and Kuwait to Invest $1 Billion in Strategic Oil Storage Project in Gwadar

Islamabad (Khabar Desk) — In a major development for Pakistan’s energy security, Saudi Arabia and Kuwait have reportedly decided to establish a large-scale strategic petroleum storage facility at Gwadar Port with an estimated investment of $1 billion.

According to details, the project will create a strategic oil reserve of 17 million barrels (1.7 crore barrels), aimed at strengthening Pakistan’s long-term energy security and protecting it from global oil price volatility and potential disruptions in maritime supply chains.

Under the plan, Saudi Arabia will contribute 10 million barrels of storage capacity, while Kuwait will develop infrastructure for the remaining 7 million barrels. The initiative is expected to transform Gwadar Port into a key regional energy hub with modern storage and handling facilities.

Officials say the project comes at a critical time, as Pakistan currently maintains only 20 to 30 days of petroleum reserves, significantly below the international safety benchmark of 90 days.

Economic experts believe the development will not only help Pakistan manage future energy crises but also lay the foundation for transforming Gwadar into a full-fledged “Energy City.” They add that the project will further strengthen Pakistan’s economic and strategic ties with Gulf countries and enhance regional energy cooperation.