Friday, December 12, 2008

China filling Shandong strategic crude oil reserve

Forbes.com | China has started filling its third strategic crude oil reserve in Huangdao, in Shandong province, the official Shanghai Securities News reported, citing sources. The report said falling crude prices are providing an opportunity to fill the reserve cost-effectively.

Around 7.3 mln barrels of crude oil have been delivered to Huangdao facility, with more than half of the shipments from Saudi Arabia, the report said.

The newspaper said more crude will go into the reserve this month and in January.

China, the world's second largest consumer and importer of oil aims to build up a reserve of 12 mln tons by 2010, from 2-3 mln tons currently. Other facilities are at Zhenhai and Zhoushan in Zhejiang province and Dalian in Liaoning province, each designed to hold 30 days' supply. The Zhenhai and Zhoushan reserves are fully operational.