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chinanews, beijing, apr. 13 – china plans to set up an early-warning system and an emergency handling system for energy resources in order to guarantee energy safety. apart from government storage of oil reserves, the government plans to get oil companies to reserve some oil resources for commercial use, according to the energy development program for the eleventh five-year period issued by the state on wednesday.
according to this report, by 2010 china’s primary energy consumption will reach 2.7 billion tons of standard coal. although production will increase at a rate of 3.5% year on year, still china can produce a total of 2.45 billion tons of standard coal by then. this means that energy shortage will increase from 188 million tons of standard coal in 2005 to 254 million tons by then. while speeding up its efforts to reserve more oil reserves, the government will choose an appropriate time to set up a 1 scheme by requiring oil companies to store some oil for commercial use so as to improve china’s oil storage system. by such compulsory scheme, chinese government will obligate chinese oil giants, including petrochina, sinopec and snooc, to store some oil reserves. it is expected that these oil giants will help china to enlarge its strategic oil storage capacity. the oil resources reserved by these companies will be 2 by the state if necessary, said zhou fengqi, an oil expert from the energy research institute under the state development and reform commission. in 2004, chinese government kicked off its oil reserve construction project. so far, china has set up four oil reserve bases, one in dalian of liaoning province, one in huangdao of shandong province, one in zhenhai and one in zhoushan, both in zhejiang province. the total storage capacity of these four oil reserve bases will reach 10-12 million tons. at present, the government is trying to select more places as oil reserve bases. the storage amount of these four oil bases will equal 30 days of china’s oil import volume, while most countries in the world normally store oil equivalent to 90 days of their import volume. the 3 oil reserve compulsory system is in line with china’s national situation, since china needs a large storage of oil reserves and most oil companies are run by the state, said zhou.
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