China to start filling oil reserves next year

SYDNEY: China, the world’s second-biggest oil consumer, may begin filling a strategic oil stockpile in the next year as demand at home surges and concerns mount over global supply disruptions, a senior government official said on Monday.

Zhou Dadi, director general of the Energy Research Institute, said China would initially store enough oil to meet demand for 20 days before increasing the stockpile further. “We are building storage facilities right now ... Within the next year could be a starting point to fill the storage step by step,” Zhou told Reuters on the sidelines of the World Energy Congress in Sydney.

Zhou did not specify how many tanks would be ready for use from next year.

“Last year we imported about 80 million tonnes (2.19 million barrels per day) of crude oil, but this year it could be more than 100 million tonnes, so the 20 days is just a start.” Official customs data for 2003 showed that China imported 91 million tonnes of crude oil.

China imports more than 40 percent of its crude needs, a proportion that is rising as domestic production declines and consumption shoots higher to fuel robust economic growth.