Sinopec (SNP.NYSE, 600028.SH, 038.HK) has started construction of a US$439 million commercial crude oil reserve base in Tianjin, state media reported. With a storage capacity of 3.2 million cubic meters in 32 oil tanks, the base covers 68 hectares in the port city’s Binhai New Area. Sinopec president Wang Tianpu said the reserve would help meet increasing oil demand in China’s northern regions, including Beijing, Tianjin and Hebei, and also help ensure energy security. It is expected to be completed in 2012. The country’s largest oil company, PetroChina (PTR.NYSE, 601857.SH, 0857.HK), also announced in April that it had begun building a one million cubic meter commercial crude oil storage project in Tianjin. In 2009, China’s crude oil imports reached 51.3% and crude output hit 189 million tonnes, according to National Energy Administration data.
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