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China's strategic oil reserve complete by 2020

By Zhao Tingting (chinadaily.com.cn)
Updated: 2010-05-10 16:02

China, the world's second largest energy consumer after the US, plans to spend 100 billion yuan to establish its strategic oil reserve project in 15 years to insure its energy security, the Nanfang Daily reported Monday, citing a Goldman Sachs report.

The project will be built in three phases. When completed in 2020, it will have a reserve capacity of 90 days' crude oil imports, the report revealed.

The first phase of four reserve bases has been completed and was put into operation in 2009. They are located in coastal provinces - Zhenhai and Zhoushan of Zhejiang province; Huangdao in Shandong province; and Dalian in Liaoning province, with a total oil reserve capacity up to 16.4 million cubic meters or 102 million barrels, which is equivalent to the amount of 21 days' oil imports.

The second phase, which is expected to have total reserve capacity of up to 26.8 million cu m, or 168 million barrels, is under construction, but the locations have not been officially revealed.

The third phase is under programming, according to the report.

China had started the national strategic oil reserve discussion since 2003 when the country first turned into a net crude oil importer. While until 2001, the plan was formally decided and the first batch of projects started construction three years later.