China’s government has said it will eventually allow private companies to invest in the country’s oil and gas storage.
According to Reuters, which quotes a blueprint document for its energy sector, the State Council said it would aim to increase government investment in the country’s oil storage facilities while also allowing non-state firms to operate storage. However the document did not provide further details.
The country has ramped up construction of storage facilities primarily for its strategic reserves. Underground caverns have been built capable of holding a substantial amount of its SPR by 202 as it looks for alternatives to expensive and exposed above ground tanks in crowded coastal regions.
Reuters says that the government has previously said it would take steps such as pushing to open upstream oil and gas exploration to private companies, help split natural gas sales from gas pipeline operations and lift the output of higher quality oil products.