PetroChina plans to build a commercial crude oil reserve base in Shanshan
County, Northwest China's Xinjiang Uygur Autonomous Region, a company source
said on Friday.
The company plans to invest 6.5 billion yuan ($844 million) in the project,
which will have a storage capacity of 8.1 million cubic meters, according to the
Other top Chinese oil companies, such as Sinopec and Sinochem, have also
embarked on the construction of their commercial crude oil reserve bases in
order to meet the rising demand, said the source from PetroChina.
top oil companies, such as PetroChina, Sinopec and Sinochem have all started to
plan for their crude oil bases. The storage capacity of the bases they are
planning will have a total capacity of up to 10 million cubic meters," said the
PetroChina official, who declined to be named.
The first phase of PetroChina's Xinjiang project will have a storage capacity
of 1 million cubic meters, involving an investment of 856 million yuan ($112
million). Construction of the base will begin next month and is expected to be
completed late next year.
Shanshan, a regional oil transport hub, is located in the east of Xinjiang
and 300 kilometers away from Urumqi, capital of the autonomous region.
PetroChina started to build another commercial crude oil reserve base in late
June in Tieling, Northeast China's Liaoning Province.
It will build eight oil reserve tanks, each able to store 100,000 cubic
meters. Total investment in the project will reach 1 billion yuan ($130
million), and it is scheduled to be completed in October 2008.
In another development, the PetroChina official said the government has
approved the construction of another two commercial crude oil reserve bases, one
in Northeast China's Heilongjiang Province and the other one in Northwest
China's Gansu Province, but did not identify which company will build the two
The bases are always located either near an oilfield or a large refinery, or
an oil pipeline hub, he said.
"China has two categories of oil reserves - strategic and commercial. The
construction of the commercial reserves is a concrete step taken to build up the
national oil reserve system," said Han Xiaoping, a veteran energy analyst with
China5e.com, one of the top energy websites in China.
Beginning in 2004, China started to build its strategic reserve system. In
the first batch, it consists of four reserves, two in Zhejiang, one in Shandong,
and the fourth in Liaoning provinces.
The two bases in Zhejiang are already operational with a capacity of around 5
million cubic meters each. The other two are expected to start operations
between late 2007 and early 2008.
(China Daily 07/07/2007 page1)