CEFC Energy in China has entered into a preliminary agreement with a state energy firm to lease their storage tanks to hold commercial state crude reserves.
Reuters reports that according to two sources at the private energy firm, the new tanks that are being constructed in Tangpu port on China’s Hainan island are due to come on stream at the end of 2015 with a total capacity of 17.6 million barrels. They will become operations after a nearby adjacent crude oil terminal is ready for us.
Under the agreement the storage would be leased for a maximum of six years, Reuters reports the sources as saying.
A final contract is due to be signed after the state firm, which has not been named, received government approval to lease the storage.
The new storage tanks are part of 42 million barrels of commercial storage that is expected to become operational this year in China.