Expanding OMC operations: HTL to develop oil storage depot in Sindh
- Oil depot to enhance supply chain and market presence in southern Pakistan
Hi-Tech Lubricants Limited acquired land in Sindh for an oil storage depot. This strategic move supports the expansion of its retail fuel station network and strengthens its presence in southern Pakistan.
- HTL's land acquisition for an oil storage depot.
- Expansion of retail fuel station network in Sindh.
Hi-Tech Lubricants Limited (HTL) has acquired around 8.7 acres of land in Daulatpur, Shaheed Benazirabad (Nawabshah), Sindh, to develop an oil storage depot as part of its plans to expand its retail fuel station network across the province.
The public limited company, involved in the procurement and distribution of lubricants and petroleum products, disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The acquisition represents an important strategic milestone for the company,” HTL said, adding that the proposed depot is intended to provide the essential storage and supply-chain infrastructure required to support the planned expansion of its retail fuel station network, i.e. HTL Stations across Sindh.
The expansion is subject to the completion of all applicable regulatory approvals and development requirements, it added.
HTL was of the view that the establishment of storage infrastructure in Sindh is significant and is expected to strengthen its operational presence in the southern region of Pakistan.
It also provides a platform for the phased rollout of its retail network in the province, it added.
“Owing to its strategic location, the proposed depot is also expected to: enhance the availability and continuity of petroleum product supplies for the company’s retail network in Sindh; improve supply-chain efficiency and reduce transportation distances and logistical lead times; support the planned addition of new retail fuel stations in the province,” it said.
Moreover, apart from facilitating volumetric growth of the company’s OMC segment, the depot is also expected to strengthen the company’s long-term geographical diversification and market presence in southern Pakistan, HTL said.
“The development of the proposed depot shall be undertaken in accordance with the applicable requirements of the Oil and Gas Regulatory Authority (“OGRA”) and other relevant regulatory authorities,” it added.
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