The tanks at China's first strategic oil reserve base station
have started filling, a National Development and Reform Commission
(NDRC) official has said.
The filling of the tanks, in Ningbo, Zhejiang Province, is a symbolic step in the
country's gradual effort to secure a strategic oil reserve, said
NDRC secretary-general Han Yongwen.
However, building up reserves for a country the size of China
will be highly challenging.
"Compared with Japan and other countries, China is a latecomer
in developing its strategic oil reserves, and the size of the
reserve is small," said Han. "Given the country's huge population
and vast territory, our reserve capabilities are still
insufficient."
China is the world's biggest oil consumer after the United
States.
Four national strategic oil reserve bases were approved by the
government in 2004. The other three are located in Daishan,
Zhejiang Province; Huangdao, Shandong Province; and Dalian, Liaoning Province.
It has been reported that the total reserve should number some
150 million barrels of oil.
Official statistics show China imported a record 145.18 million
tons of crude oil last year, making it the world's largest oil
importer after the US and Japan.
Zhu Hongren, vice-director of the NDRC's economic operation
department, said the constraints on the country's coal, electricity
and oil supplies saw great alleviation last year.
The nation's coal reserve stood at 144 million tons by the end
of 2006, with 24.11 million tons earmarked for power plants, which
was normal compared to the previous year, he said.
The country managed to ensure an adequate supply of refined oil,
which has previously been in tight supply, he said.
Han said China would consider the domestic landscape when
setting refined oil prices.
It had been reported earlier that the NDRC was planning to link
domestic gasoline and diesel prices to the cost of international
crude oil prices, adding a fixed margin for domestic refiners.
Zhu said the tight markets for coal, electricity and oil would
ease this year, but more "structural problems" would emerge.
(China Daily January 30, 2007)