CEFC China Energy has agreed to lease storage tanks at its new Hainan facility to help build China’s strategic reserves.
According to Reuters, ChemChina will use the tanks at the Yangpu storage facility to store crude as part of the country’s strategic petroleum reserves.
It is expected that the new facility, which will be able to hold 17.6 million barrels of oil, will be opened in June.
The terminals will have 15 million barrels of storage for crude and 2.5 million barrels for refined products.
ChemChina is the latest state-owned company to join in the country’s stockpiling programme.
There has been a greater focus on building and strengthening strategic petroleum reserves across Asia recently as more investment is dedicated to this rather than commercial petroleum reserves.