China to complete 4 strategic oil reserves by year-end
China expects to finish the construction of its first four strategic oil reserves by the end of this year, with total capacity amounting to 16.4 million cubic meters, according to Zhang Guobao, administrator of the National Energy Administration (NEA).
NEA was established during the reshuffle of government agencies in March. The first four reserves are respectively located in Dalian, Qingdao, Ningbo and Zhoushan. By 2010, the oil reserves they maintain will be equivalent to 30 days of oil imports.
The largest among the four strategic reserves is in Ningbo, which started operation in late 2006, with a total storage capacity of 5.2 million cubic meters.
In a bid to insure the stability of the oil price and supply, the Chinese government plans to construct strategic oil reserves in three steps over 15 years, and the construction has started since 2004. The total investment will reach RMB 100 billion.
The second batch of strategic oil reserves is under discussion on the locations, but Zhang declined to give any details about that.
Tags: oil