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Tianjin confirmed as strategic crude oil reserve base

By Song Jingli (chinadaily.com.cn)
Updated: 2009-07-08 13:37

The Tianjin municipal government announced recently that its Binhai New Area will become one of second batch of eight state strategic crude oil reserve bases. China Petrochemical Corporation (Sinopec) will begin to build the bases within this year.

According to plans, the first phase of the new project will cost 10 billion yuan ($1.46 billion). Sinopec will build crude oil storage tanks with a total capacity of 3.2 million cubic meters and refined oil storage tanks of 2 million cubic meters, which will occupy a total area of 2.1 sq m.

Zhang Guobao, head of the National Energy Administration (NEA), said recently that plans for the second phase of China's crude oil strategic reserve had been approved by the State Council, or the Cabinet, and construction would begin this year.

The eight new bases will have a total capacity of 28 million tons upon completion, exceeding that of the first four bases, according to government plans.

The other two of the eight new bases confirmed are to be located in Lanzhou of Gansu province and Jinzhou of Liaoning province, with the remaining five yet to be announced.

China launched its state strategic oil reserve project in 2003 and has since built four oil reserve bases in coastal cities of Qingdao, Dalian, Ningbo and Zhoushan. The first four bases were completed and put into use last year. Zeng Chuanya, a NEA official, revealed that they have a total capacity of 16.4 million cubic meters.

The bases planned in third phase of the state oil reserve will have a capacity of 28 million tons, according to government plans.

When all the bases are in place, China's strategic crude oil reserve will equate to 90 days of the country's net import of oil.

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