Energy Giant Chevron Interested in Setting Petroleum Storage in Pakistan

Chevron Energy Joint, a prominent global player in the energy sector, has expressed a strong interest in both storing and selling petroleum products within Pakistan’s borders and beyond.

The company has demonstrated a sincere desire to explore opportunities in the Pakistani market, as the government has authorized international suppliers to import, store, and subsequently export crude oil and petroleum products, as reported by a national publication.

Initially, Chevron has set its sights on warehouses located within the legal jurisdiction of the Karachi Port Trust (KPT).

Also Read: Pakistan’s Petroleum Imports Faces Sharp Decline in Q1 of FY24

It’s worth noting that, unlike other businesses in the same industry, Chevron is among the few willing to venture into the fuel trade through bonded warehouses in Pakistan since the government’s policy change on September 1, 2023. This policy shift was designed to enhance the accessibility of petroleum products to local oil marketing companies by allowing the import of such products through customs-bonded storage facilities in the country.

This policy permits foreign suppliers to store crude oil and petroleum products not only in Pakistan’s ports but also in various locations throughout the country. Foreign suppliers, as well as their registered subsidiaries, are granted the privilege of maintaining bulk inventories of crude and petroleum products within their privately-owned bonded warehouses situated anywhere in Pakistan.

Furthermore, foreign suppliers have the option to establish a registered company to gain access to the local banking system.