China to fill strategic oil reserve by end of 2006

Mar. 7, 2006 (China Knowledge) - China plans to begin storing oil at its first strategic oil base by the end of this year and to put into operation three more bases by 2008, a senior official said on Monday, as reported by Associated Press.

The first oil reserve base is under construction at Zhenhai, in the eastern province of Zhejiang, and will begin filling tanks by the end of 2006, said Ma Kai, minister for the National Development and Reform Commission, at the sidelines of the ongoing National People''s Congress (NPC), China''s nominal parliament.

Ma also said that the three other facilities to be used to hold China’s strategic oil reserves will be ready during 2007 and 2008.

China, had previously been the only large oil consuming country without any strategic oil reserve system, due to high oil prices.

The National Development and Reform Commission, China''s top economic policy body, last month said the country needs to increase refining capacity and raise prices of oil-based products. The commission warned that existing refineries could not process the extra 17 million tons of oil to meet demand.

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