December 30, 2009 / 11:53 AM / 9 years ago

FACTBOX - China's strategic oil reserve plan

BEIJING, Dec 30 (Reuters) - China has started building a 3 million cubic metre (19 million barrel) strategic crude oil reserve facility in Lanzhou in Gansu province and plans to start operating it in 2011, state media reported.

Lanzhou is among the sites for the second of three phases of crude oil reserves. China hopes to complete the second phase, totalling 170 million barrels, in two years, Liu Qi, deputy head of China’s National Energy Administration, said in September.

FIRST PHASE

China finished filling the 102 million barrel first phase by early 2009, 30 months after completing the tanks in October 2006.

Although the tanks have been filled, state-owned oil firms CNPC, Sinopec, Sinochem and CNOOC have stepped up efforts to secure oil for the storage since oil fell below $100 a barrel last year.

Following is a table showing the four bases that make up the first phase, with capacity in millions of barrels and investments in billions of yuan.

SECOND PHASE

Total capacity of 26.8 million cubic metres of oil, or 170 million barrels.

In choosing sites for the second phase, China will prioritise underground storage tanks and landlocked regions. The NEA’s Liu Qi said some second phase storage will be the result of expanding first phase facilities.

Although the government only announced the launch of second phase construction in September 2009, media reports have said at least 3 million cubic metres (19 million barrels) of second phase tanks have come onstream since the end of 2008.

The Chinese media reports said that by the end of 2009 or early 2010, some 69 million barrels of storage capacity may be added as part of the second phase and almost all will be ready for crude storage by the end of 2011.

The locations below are reported as the potential sites for the stockpiling plans, but the government has never officially announced the selected sites for the second phase.

The capacity is in millions of barrels and investments in billions of yuan.

THIRD PHASE

Total capacity of 28 million tonnes, or 204 million barrels,

to be built in underground storage in landlocked regions of

China. Chinese media has said they will be built by 2020.

Reporting by Beijing Newsroom; Editing by Michael Urquhart

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