Beijing, 5 January 2010

China has started building the Lanzhou strategic oil reserve base in northwestern Gansu province after kicking off construction on Dushanzi state oil tanks in Xinjiang in September, part of China's second phase of its strategic oil stockpiling plan.

Officials from the National Development and Reform Commission (NDRC), the National Energy Administration, top oil firm CNPC and local governments attended a groundbreaking ceremony on Dec. 29, CNPC said in a report on its website on Tuesday.

The Lanzhou base, with storage capacity of 3 million cubic metres or around 18.9 million barrels, is expected to cost 2.38 billion yuan ($348.6 million) and be ready for use in the first half of 2011, the report said.

Ends --

View Latest Oil and Energy Prices