By Lin Guan (chinadaily.com.cn)
Updated: 2007-12-18 11:24

China officially established a national oil reserve center today, after its application was approved by the State Council, the National Development and Reform Commission (NDRC) said in a statement.

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The special center, mandated to stock, divert, and release oil reserves, will help the country to cope with emergencies and bolster energy security. It's also responsible for building up reserve bases and monitoring domestic and global oil supply and demand.

As China's economy expands, energy consumption will maintain rapid growth, requiring stable and sufficient energy supplies. As a result, the center will do its utmost to ensure this supply by standardizing oil reserves management and strengthening managing expertise, said the NDRC statement.

China started a state strategic oil reserve base program in 2004 as a way to offset oil supply risks and reduce the impact of fluctuating energy prices on China's internal market of processed oils.

Currently four reserve bases have been built or are under construction in Zhenhai, Zhoushan, Dalian and Huangdao. Wanzhou in Chongqing Municipality just submitted its application to the central government to become another reserve base.

According to previous reports, China hopes to ultimately have more than 100 million barrels in store by the end of the decade, the equivalent of 90-day net oil imports.