In 2007 China announced an expansion of their crude reserves into a two part system. Chinese reserves would consist of a government-controlled strategic reserve complemented by mandated commercial reserves.[2] The government-controlled reserves was completed in three phases. Phase one consisted of a 101.9 million barrel reserve, mostly completed by the end of 2008. The second phase of the government-controlled reserves with an additional 170 million barrels for completion by 2011.[3] Recently, Zhang Guobao the head of the National Energy Administration also stated that there will be a third phase that will expand reserves by 204 million barrels with the goal in 2009 of increasing China's SPR to 90 days of supply by 2020.[4]
Reserve structure
Government reserves in 2009
The government and enterprise reserves are managed by the National Development and Reform Commission(NDRC). Current plans call for government reserves of 475.9 million barrels (101.9 million barrels completed, 374 million barrels planned).[5]
First phase facilities:
Dalian, Liaoning Province. Capacity of 19 million barrels (3,000,000 m3), filled as of September 2009.[6]
Currently the enterprise reserves compose a smaller portion of the overall SPR with a 209.44 million barrel strategic reserve planned (35.33 million barrels completed, 51.5 million barrels under construction).
CNOOC facility, Gansu Province, under construction. Planned capacity of 11.3 million barrels (1,800,000 m3).[27]
Oil storage reserves by medium and small Chinese oil companies
The planned state reserves of 475.9 million barrels plus the planned enterprise reserves of 209.44 million barrels will provide around 90 days of consumption or a total of 685.34 million barrels.[28]