China, the world’s second-biggest energy consumer, plans to build emergency oil-storage tanks in the northeast to help bolster fuel-supply security, reported Bloomberg.
The tanks are part of the second phase of China’s construction of emergency oil stockpiles, said Zhang Guobao, the chief of the National Energy Administration.
China will set up oil reserves equivalent to 100 days of net imports before 2020 to avoid supply disruptions, China Petrochemical Corp., the nation’s top refiner, said in a company newsletter on Sept. 23, citing a plan approved by the State Council. The stockpiles will be built in three stages, according to the state-run company.
Construction of the second phase has started with the Dushanzi facility in the western province of Xinjiang, Zhang said last month.
Under the first phase, China has finished building reserves equivalent to about 30 days of net imports, the energy administration said in June.
The International Energy Agency, adviser to 28 oil-consuming nations, recommends its member countries to maintain a stockpile level of 90 days of net oil imports.
Source : Konaxis
