A fuel depot with a storage capacity of 945,000 cubic meters, believed the largest of its kindin China, has started operation at Zhanjiang Port in south China's Guangdong Province.

The depot belongs to the China National Petroleum Corporation (CNPC).

Construction of the project will be divided into two phases. The first phase, started in 2002 and completed at the end of Marchthis year, covers 38 hectares and cost 520 million (62 million US dollars). The depot has 15 fuel tanks.

In the second phase, which is to start sometime within the year,three fuel tanks each with a storage capacity of 100,000 cubic meters will be built.

Upon completion of the whole project, the depot in Zhanjiang will be capable of storing 1.24 million cubic meters of fuel.