China approves port expansion near Zhejiang oil reserves

BEIJING (MarketWatch) — China’s government has granted approval to China Petroleum & Chemical Corp. (SNP), or Sinopec, and China National Chemicals Import & Export Corp., or Sinochem, to expand their crude oil terminals in eastern Zhejiang province near the country’s strategic oil reserves, the country’s top planning agency said Monday.

The expansion will allow the terminals to handle Very Large Crude Carriers with loads of 250,000-300,000 deadweight tons and increase their shipment capacity by a combined 22.5 million metric tons annually.

Port expansion will help Sinopec and Sinochem increase the efficiency of crude oil imports and may help meet the country’s demand for crude imports to fill the strategic reserves nearby.

Last October, China completed and started filling its first reserve facility in Zhenhai city in Zhejiang province, with Sinopec the builder and operator of the facility.

MarketWatch