Others News
- New oil reserve to store Kazakh crude
Date: 15-Mar-2007 Sources: (Shenzhen Daily)
THE country may build a fifth strategic oil reserve in Lanzhou in the northwestern province of Gansu to store crude from Kazakhstan, State media said yesterday, citing an unnamed industry insider.
'It will be filled by crude imported from Kazakhstan through China National Petroleum Corp.'s oil pipelines across northwestern China,'said an adviser to the largest oil producer in China, according to the Shanghai Securities News.
The newspaper said Gansu will build a 10-million-ton oil reserve, the largest ever in China and part of the country's Phase-II strategic oil reserve program, to stock both crude and oil products.
An oil pipeline between the Atasu fields in central Kazakhstan and Alashanku in western China started operating in mid-2006, with a designed annual delivery capacity of up to 20 million tons by 2010.
The Gansu base will also store oil produced in Northwest China's Xinjiang region, the report added.
China National Petroleum Corp. has completed a 1,859-kilometer pipeline from Urumqi in Xinjiang to Lanzhou.
The company plans to invest a total of 8 billion yuan (US$1.03 billion) to build two more oil pipelines, one for crude oil transportation and the other for oil products, to link Lanzhou and Dushanzi and Tarim in Xinjiang.
Earlier this month the Central Government said it had chosen Gansu Province for the Phase II strategic oil reserve program, but did not specify a site.
Guangdong and Hainan provinces in the south and Hebei in the north are also on the shortlist for Phase II sites that are expected to add 28 million tons of storage capacity to the total reserve.
Under a first phase, China began building four oil reserve sites in 2004 and has so far invested about 6 billion yuan to secure storage of 10 million tons.
Two of the sites, in East China's Zhejiang Province, are already in operation while the other two, one in Shandong Province in the east and one in northeastern Liaoning Province, are still under construction, the Xinhua news agency reported recently.
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