China is continuing its second-phase strategic petroleum reserves (SPR) programme by building a 19 million-barrel government crude reserve base in the northwestern city of Lanzhou.
The base should start operations by Q3 2011, and forms part of Beijing's plan to add 170 million barrels of storage in the second phase after the country filled its first emergency tanks of about 100 million barrels by early 2009.
The new base, costing 2.378 billion yuan (241.8 million) won government approval in November.
The tanks will store crude oil pumped from the Xinjiang region as well as supplies from central Kazakhstan, which has been pumping oil to China via a pipeline.
The facility is next to a 200,000 barrel a day refinery operated by top oil and gas firm PetroChina, which is building at the same time a 1 million m3, or 6.3 million barrel tank farm to serve its own refining system.