CNPC, the parent company of PetroChina, is speeding up the construction of oil products storage tanks to cope with market oversupply.
The company plans to build 430,000 m³ of new storage capacity, in Zhuhai (Guangdong), Ningbo (Zhejiang), Dalian (Liaoning), 13 tanks along the Lanzhou-Zhengzhou-Changsha oil product pipeline, and 12 tanks including those in Wuhu (Anhui) and Jiujiang (Jiangxi). In addition, it will rebuild and expand another 45 pre-existing tanks.
CNPC this year has already put 10 tanks, including those in Xiamen (Fujian), Ji'nan (Shandong) and Ya'an (Sichuan), into operation. Its northern company plans to have five tanks enter operation within the year and begin construction of another five.
In southwestern Chongqing, CNPC is upgrading two large tanks from a storage capacity of 220,000 m³ to 300,000 m³ and it is expected that these will be able to sustain Chongqing's supply until 2015.
To strengthen its energy security, in recent years China has focused more on energy reserves. It has built eight state strategic petroleum storage tanks and the state-run oil firms are also building up their commercial reserves at increasing speed.
Currently, China's crude oil storage capacity can only sustain 30 days of consumption, far less than the International Energy Agency's (IEAs) 90-day standard.
The new crude oil tanks will contain 3 million m³ of storage capacity, able to store 1.8 million tonnes of oil and handle an annual turnover of 7.2 million tonnes.
To learn more on China's activities and its neighbouring countries' check your diary for November and visit http://www.tankstorageevents.com/tsasia/index.shtml