Petroleum Institute of Pakistan: European markets not to be attractive long-term

The main perspective for energy exports from the Caspian and Central Asia region lies in southern markets, Shehryar Omar, CEO of the Petroleum Institute of Pakistan, said at the 2nd Caspian and Central Asia Oil Trading and Logistics Forum in Baku, Report informs.

Omar stressed the importance of presenting a different approach to ongoing discussions:

"In 5–10 years, European markets – Western routes – will no longer be the main outlet for the region. Europe's population is declining, and the continent is gradually moving away from fossil fuels. Regional countries should focus more on the South, where there are about 2 billion people, rapidly growing populations, and developing economies. This represents significant market potential for the future."

Omar noted that Pakistan offers important transit opportunities: "Through Pakistan, access to the warm waters of the Arabian Sea is possible. Although this idea has been discussed for years, no real results have been achieved. It is now time for companies to invest in infrastructure projects that direct products not to the West or East, but to the South."

He added that some cooperation initiatives already exist: "For example, SOCAR is cooperating with Pakistan in LNG trade. The company is also a partner in the 'White Oil Pipeline' project together with two local entities. Future changes in the energy market must be taken into account. As Europe moves away from fossil fuels, these markets will become less attractive. Therefore, investment in southern transport corridors and infrastructure is essential now."

Omar also emphasized that southern routes provide an alternative in terms of geopolitical risks: "This route lies outside the Strait of Hormuz, offering additional advantages in times of potential risk. The region's energy strategy must consider long-term perspectives. Opportunities are not in the West, but in the South, and steps must be taken in this direction starting today."