China National Petroleum Corp. (CNPC) said it aims to fill its largest oil-storage facility with 88 million barrels, of Russian crude annually when construction is completed in about a year, The Wall Street Journal reported.
CNPC recently began building two storage tanks with capacity of 150,000 cubic meters and two with capacity of 100,000 cubic meters at its Nansan Oil Depot, at China's flagship Daqing oil field in the northeastern province of Heilongjiang, said the paper.
Foundations for the project are expected to be in place by the end of the year, and CNPC, China's largest oil producer by output, anticipates it will be fully finished by October 2007. Chinese companies and the government have been working to increase the levels of crude kept in reserve to ensure adequate supply during times of disruption. Steps have included establishing a strategic oil reserve, which started to be filled this summer.