China has initiated the first phase of strategic oil reserve construction in 2003
The Chinese government approved the second phase of the national strategic oil reserve will begin at Caofeidian in Hebei Province, an official with the local government told Interfax on Tuesday.
"The final approval document has not yet been issued," said an official surnamed Liu at the Planning and Development Bureau of the Caifeidian Administration Bureau,.
With the first set of storage depots still standing empty in Zhenhai, Zhejiang Province, it will be some time before Caofeidian goes into full operation.
The preliminary work on the new project is expected to begin soon. Sinopec [NYSE:SHI], the country's largest oil refiner, will begin land reclamation at the 15-million-tonne crude reserve base in Caofeidian at the end of this month, which involves an investment of more than RMB 200 million ($24.66 million), according to Liu.
China has initiated the first phase of strategic oil reserve construction in 2003, including four bases along the eastern coastlines, Dalian in Liaoning, Huangdao in Shandong, Zhenhai and Zhoushan in Zhejiang. These bases will be completed by 2008.