UAE mulls building oil reserves in Pakistan

[SQ8]

Keeping petroleum reserves costs money. I assume it costs taxpayers of Pakistan. It is one time payment to purchase the petroleum. There is one time cost to construct the storage facilities unless you can make use of something natural. There is annual cost of maintenance.

Correct - so while having those reserves sounds nice(and is).. the more reserves you have the more you pay to keep them active.

 

[AZADPAKISTAN2009]

Balochistan is ideal place for Storage

 

[Pakistan Space Agency]

Still mulling?

I mull building an oil refinery in Pakistan too.

I am very "interested". I have a "keen interest". I "desire" to explore possible avenues. I think Pakistan has huge "potential".

These are the buzz words I've been hearing on regular basis for decades.

 

[nahtanbob]

Still mulling?

I mull building an oil refinery in Pakistan too.

I am very "interested". I have a "keen interest". I "desire" to explore possible avenues. I think Pakistan has huge "potential".

These are the buzz words I've been hearing on regular basis for decades.

how much money are you investing ?
what is the tax structure for the oil refinery ?
what is the location of the refinery ?
How do you plan to import the petroleum ?
how do you plan to distribute petroleum products ?

 

[CrazyZ]

Pakistan will become GCC's beachhead to Eurasia.

 

[Genghis khan1]

Correct - so while having those reserves sounds nice(and is).. the more reserves you have the more you pay to keep them active.

Operating cost for an on land storage should be negligible compared to the potential benefit the reserves provide.

Oil industry works in a boom and bust cycle. If Pakistan develops one year of strategic storage. Buy and fill when oil prices are low and use when they are 3 times high. Potential savings translate into $7 to $15 billion a year, depending upon volume used.

Cycle usually last from 3 to 5 years, so ideally filling up 3 years reserves should yield higher savings.

 

[Genghis khan1]

$15 billion is not a small amount. That’s enough money to add new loan free Dams. acquire 500 JF-17s, few dozen subs or 2 to 3 Aircraft carriers.

 

[raahaat7]

what is the catch here ? No one does things for free

I do not know where the reserves will be physically be stored

level some small hill. best solution. being done in india.

 

[raahaat7]

Depends on the size of the reserve however It had to start from somewhere. 3 to 4 years would have been the timeline for such a project.

Keeping petroleum reserves costs money. I assume it costs taxpayers of Pakistan. It is one time payment to purchase the petroleum. There is one time cost to construct the storage facilities unless you can make use of something natural. There is annual cost of maintenance.

india started building its reserves in the 90's.

 

[khansaheeb]

what is the catch here ? No one does things for free

I do not know where the reserves will be physically be stored

They are hoping if there is a war then their oil will be safe with Pakistan.

 

[Danish Moazzam]

crude oil is the worst product you want to store, it is an amalgamation of so many HydroCarbon(HC) that it is the worst to handle.

• It contains vapor to Asphalt, a recipe for disaster in case of fire. As the vopor will trigger the earliest and with high calorific value product avaialbe they will keep burning the longest.
• It is not a clean product so material movement and hndlin is not easy.
• it has settling issues, clogulation issues
• It need full contact Floating roofs that need to be managed that too there is a continous vapor loss.
• the logistics to and from the storage facility is also a question

So on paper it might seem good but not practical until unless you can utilize it in the volumes mentioned