China set up oil reserve center

China set up oil reserve center
Dec 18, 2007 02:53
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	According to Xinhua News Agency, China announced Tuesday the setting up of a national oil reserve center. The top economic planning agency confirmed the news later. China started a state strategic oil reserve base program in 2004 as a way to offset oil supply risks and reduce the impact of fluctuating energy prices worldwide on China's domestic market of refined oil. The center, the administrative body of the country's national oil reserve system, takes the responsibility of building and making use of the country's strategic oil reserves The commission said the center will also keep an eye on the movement of demand and supply of both domestic and international oil markets. The commission said the country has decided to establish four strategic oil reserve bases in Dalian, Qingdao, Ningbo and Zhoushan, respectively. All of them are on the coast. The first one in Ningbo, eastern China's Zhejiang Province, has started to stock up on oil. They are designed to maintain strategic oil reserves of an equivalent to 30 days of imports, or about 10 million tons. According to a statement from the third China-U.S. Strategic Economic Dialogue, the United States and China agreed to strengthen cooperation on the building and management of strategic oil stocks. Imports accounted for 66 percent of U.S. domestic petroleum use last year. The figure for China, which became a net importer of oil during the 1990s as its economy took off, was 47 percent. China's strategic oil reserve stood at two to three million tones, and would be expanded to about 12 million tons by 2010, according to the National Development and Reform Commission. Extract from Xinhua News

Dec 18, 2007 02:53

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According to Xinhua News Agency, China announced Tuesday the setting up of a national oil reserve center. The top economic planning agency confirmed the news later.

China started a state strategic oil reserve base program in 2004 as a way to offset oil supply risks and reduce the impact of fluctuating energy prices worldwide on China's domestic market of refined oil.

The center, the administrative body of the country's national oil reserve system, takes the responsibility of building and making use of the country's strategic oil reserves

The commission said the center will also keep an eye on the movement of demand and supply of both domestic and international oil markets.

The commission said the country has decided to establish four strategic oil reserve bases in Dalian, Qingdao, Ningbo and Zhoushan, respectively. All of them are on the coast. The first one in Ningbo, eastern China's Zhejiang Province, has started to stock up on oil.

They are designed to maintain strategic oil reserves of an equivalent to 30 days of imports, or about 10 million tons.

According to a statement from the third China-U.S. Strategic Economic Dialogue, the United States and China agreed to strengthen cooperation on the building and management of strategic oil stocks.

Imports accounted for 66 percent of U.S. domestic petroleum use last year. The figure for China, which became a net importer of oil during the 1990s as its economy took off, was 47 percent.

China's strategic oil reserve stood at two to three million tones, and would be expanded to about 12 million tons by 2010, according to the National Development and Reform Commission.

Extract from Xinhua News

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