Crude oil reserve base likely in Gansu

China may build a strategic crude oil reserve in the northwestern Gansu province as part of the country’s plan to add eight new oil stockpiles by 2011, said a local official.

The reserve is likely to be built in the Hexi Corridor region, and a feasibility study is currently being done on the proposed project, Li Jianhua, Party secretary of Jiuquan city, told the Hong Kong-based newspaper Wen Wei Po.
Two cities in the province, Yumen and Wuwei, will likely be short listed for the reserve project, said Li.


Meanwhile, China National Petroleum Corp has started constructing a 1.8-million sq m commercial crude oil reserve in Gansu, he said.

These facilities in Gansu province would make it an important oil reserve base in western China, he said.

The National Energy Administration (NEA) announced at a national energy conference in February that China would build eight new crude oil reserves by 2011. The program will increase its strategic crude reserve capacity to 44.6 million cu m.

China Daily