China will formally launch its strategic petroleum reserve program next year, as learned from related departments. An oil reserve base in Zhenhai, Zhejiang Province is now under construction, which will be able to hold more than 5 million cubic meters oil when its first-stage project is completed next year.

The state's first batch of reserve bases approved by the National Development and Reform Commission are located in Zhenhai (Zhejiang Province), Daishan (Zhejiang Province), Huangdao (Shandong Province) and Dalian (Liaoning Province). Of them Zhenhai is regarded the largest one in scale and the one of the fastest construction speed.

Construction for the other three bases is also stepped up. The first-stage project of the national petroleum program is now in full swing, officials from the Commission said. China's three oil giants-- China Petroleum& Chemical Corporation (Sinopec), China National Petroleum Corporation (CNPC) and China National Offshore Oil. Corp. (CNOOC)--are entrusted by the state to be responsible for the overall construction of the four bases, which are hopefully to be basically completed between 2006 and 2008.

Upon completion, the four bases will altogether form a government strategic reserve capability equivalent to the amount of crude oil imports in 10 days. Accounting the 21 days commercial oil reserve within the oil system nationwide, China's overall oil reserve capacity will exceed 30 days of imports.

It is learned that the oil reserve in the United States, Japan and Germany have reached 158 days, 161 days and 127 days of net imports respectively. The standard reserve capacity suggested by the International Energy Agency to its member states is 90 days imports. This is also the long-term goal of China, which is expected to be realized by 2015.

By People's Daily Online