Pakistan's Gwadar faces stiff competition from Gulf ports
New Delhi, Oct 25
Marine bunkering services have begun at Pakistan's new Gwadar port, but the venture faces stiff competition from ports in the Gulf countries that have spent years building their commercial networks for fuelling ships, according to a report in Middle East Monitor.
The Port of Fujairah in the UAE is one of the world's three largest bunkering hubs. Storage and blending facilities, supported by established suppliers, give customers operational advantages. Fujairah also lies outside the Strait of Hormuz. That geographical position is no exclusive advantage for Gwadar, states the report by Kamran Yeganegi.
Similarly in Oman, Duqm's refinery provides an industrial foundation for the port. The Omani-Kuwaiti joint venture OQ8 announced in February 2025 that refinery throughput had reached 255,000 barrels per day, exceeding its nameplate capacity of 230,000. Duqm illustrates how sustained production and sales give economic substance to a coastal location.
According to a July 2026 announcement by Pakistan's Port Community System, Gwadar's inaugural commercial bunkering operation delivered 2,500 tonnes of very low sulphur fuel oil produced by Cnergyico. Vitol conducted the operation with Pakistan's National Logistics Corporation (NLC). Cnergyico's coastal refining complex is located in Hub, Balochistan. Gwadar therefore offers an outlet for domestically refined fuel to international shipping.
However, the immediate challenge is securing repeat business. A vessel will choose Gwadar if fuel prices and the total cost of the call are competitive, and supply is reliable.
The report highlights that Gwadar's geographical advantages also have limits. Oil loaded at terminals inside the Gulf must still pass through Hormuz to reach Gwadar, unless pipelines first carry it to export terminals outside the strait.
Gwadar can offer another location for services and distribution. Becoming an alternative energy export route requires connections extending beyond the port itself.
Meanwhile, according to reports in June 2026, the proposed $10 billion Saudi refinery announced for the port in 2019 had yet to attract the promised investment which leaves the question of whether the port can take-off as a developed project wide open.
— IANS
Leave a comment