Beijing: China Shipping (Group) Co President Li Shaode told on Monday that he had proposed that the government use some of its foreign exchange reserves on floating oil storage because the onshore tanks were full.
‘“The four onshore reserve bases have been fully filled, so we need to invest urgently in floating storage,” Li told on the sidelines of the country’s annual parliament. China is accelerating the build-up of its oil reserves to avoid the economic dislocations the country suffered in 2008 from fluctuations in the world oil price. China’s National Energy Administration (NEA) recently released a plan to build nine large refining bases in coastal areas over the next three years, sources with the China Petroleum and Chemical Industry Association said last week. The plan involves building three 30-million-ton refinery bases in three cities (Shanghai, Ningbo and Nanjing) in China’s economically dynamic Yangtze Delta and six 20-million-ton bases in other coastal areas from Tianjin in the north to Guangzhou in the south. It will also facilitate major joint-venture refinery projects between Chinese companies and partners from oil-producing countries such as Venezuela, Qatar and Russia.