Emergency oil-storage facilities are reportedly being constructed in Shanshan, Jintan, Zhoushan and Huizhou, thus covering potential need in west, east and south China.
The country's three-phase strategic petroleum reserves program, of which these (second phase) facilities are included, is expected to increase national crude-storage capacity to 270 million barrels.
The program's aim is to decrease China's dependence on crude imports, and provide more security from global oil-price fluctuations by creating emergency supplies.
China Oil, Gas & Petrochemicals has reported that 8 bases are to be included in the scheme and all second phase tanks are able to store higher-sulphur crude. The other bases in the second phase, according to government and oil-company reports, are located in Xinjiang, Gansu, Liaoning and Tianjin.
According to China Oil, Gas & Petrochemicals, China's third-phase crude-reserves program is expected to be completed by 2020, and will increase total capacity for state inventories to a potential 500 million barrels.