Guangdong mulls 2 oil storages in Huizhou, Shenzhen
The Guangdong provincial government is mulling investing RMB 6 billion (US$880 million) to build two strategic crude oil and oil product reserve bases respectively in Huizhou and Shenzhen, in an effort to ease local fuel shortage, according to a statement released by the National Development and Reform Commission of the southern province.
The two oil storages are part of the project named “Resources Reserve Project”, which also includes the construction of reserve bases for coal, grain, and edible oil, with a total investment of RMB 93.5 billion.
The construction work of the two oil reserve bases is expected to start in 2009, the statement said. But all the 10 projects are pending approval from the central government.
Guangdong, the largest oil consumer in the country, is often facing pressure of fuel shortage. The provincial government is shoring up efforts to guarantee sufficient fuel supply so as to control local prices.
An earlier market report showed that more than 90% of energy consumption of the province relies on imports and delivery from other provinces.
At present, Guangdong’s oil reserves can only meet 20-day consumption, far below the safety line of 90 days.
Tags: crude-oil, investment, oil-product