Beijing: The first phase of China's massive 16.4 million cubic metres strategic oil reserve project aimed at averting supply based risks and fluctuating energy prices has been completed and made operational, it was announced on Thursday.
The reserve project has a total oil storage capacity of 16.4 million cubic metres with actual oil reserves totalling 12.43 million tonnes, the National Bureau of Statistics (NBS) said.
The phase one project consists of four oil reserve bases, namely the Zhoushan and Zhenhai bases in east China's Zhejiang Province; Dalian base in northeast China's Liaoning Province; and Huangdao base in east China's Shandong Province, state-run Xinhua news agency reported.
The state strategic oil reserve base program was launched in 2004 as a way to offset oil supply risks and reduce the impact of fluctuating energy prices worldwide on the domestic market for refined oil.
According to an action plan on energy development strategy for the 2014-2020 period which was released yesterday by the State Council, China will expand its reserves through the second and third phases of the reserve project.