Building a world of
resilient communities.

MAIN LIST

 

China to set up company to build oil reserve infrastructure

BEIJING: China plans to establish a company that will raise as much as 100 billion yuan (12 billion dollars) to build the country's strategic oil reserve infrastructure, state media reported.

Given China's inadequate storage facilities, growing demand, international price fluctuations and geopolitical instability, a strategic reserve was becoming increasingly necessary, the 21st Century Business Herald said.

Fund-raising has always been the greatest hurdle towards building strategic reserve infrastructure and this would be addressed by the new company, it said, citing sources from the National Development and Reform Commission (NDRC).

The newspaper reported that state-owned shares of the country's four major oil groups -- China National Petroleum Corp, China Petroleum Chemical Corp (Sinopec), China National Offshore Oil Corp (CNOOC) and Sinochem Corp -- may be injected into the oil reserve company as investment capital.

Another possibility is that the government may raise funds by levying market entry fees on oil companies who trade their goods on the oil products market, which has not happened before.

China is increasingly turning to oil imports due to strong domestic demand with total consumption expected to reach 308 million tons this year, the International Energy Agency (IEA) said.

It is not expected to have a 90-day oil reserve until 2015, Yang Qing, a researcher in the NDRC's energy research bureau, was quoted as saying.

Premier Wen Jiabao said last month that China must promote the sustainable use of oil and gas resources to maintain long-term, stable development.

- AFP

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

Tags:  

Our Renewable Future   

How we use energy is as important as how we get it.

Peak Oil Notes - Apr 23

Industry leaders are warning that the $114 billion cut in capital …

Climate change: can the Seneca effect save us?

A Seneca shaped production curve would considerably reduce the amount of …

Saudi Arabia’s Oil-Price War Is With Stupid Money

Saudi Arabia is not trying to crush U.S. shale plays. Its oil-price …

Peak Oil Review - Apr 20

Weekly review including Oil and the Global Economy, The Middle East & …

The Great Burning   

What will we do when the Great Burning comes to an end?

The Renewable Revolution

Don’t hold your breath, but future historians may look back on 2015 as …