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FACTBOX-China's strategic oil reserve plan

 BEIJING, Jan 25 (Reuters) - China's total strategic petroleum
reserve capacity reached 24.38 million tonnes or 178 million
barrels by the end of 2010, suggesting that 76 million barrels
has been added to the project's second phase, according to the
country's leading oil firm.
 The research unit of China National Petroleum Corp (CNPC)
said on Jan 20 that China's total SPR capacity will increase to
500 million barrels once the third phase is completed.
 However, China Economic Weekly, a magazine run by the
official People's Daily, reported in its latest issue dated on
Jan 17 that China's total SPR capacity could increase to 85
million tonnes, or 621 million barrels, by 2020 when the three
phases of storage facilities are completed.
 The world's second-largest oil consumer was reported to have
selected eight sites for its second phase of state strategic oil
stockpiling after filling the first phase in early 2009.
 The government has never disclosed second phase details such
as location, individual capacity, investment or construction
schedule.
 FIRST PHASE
 The filling of first phase of 102 million barrels took 30
months since the first batch of tanks was ready in October 2006.
The prices for the crude oil stored in the first phase averaged
at about $58 a barrel, Zhang Guobao, former head of the National
Energy Administration, was quoted as saying by Chinese media.
 Following is a table showing the four bases in the first
phase, with capacity in millions of barrels and investments in
billions of yuan.
----------------------------------------------------------------
Site                Builder   Completion Date    Size Investment
Zhenhai, Zhejiang   Sinopec       Oct 2006       32.7        3.7
Dalian, Liaoning    CNPC          End 2008       18.9        2.5
Huangdao, Shandong  Sinopec       End 2008       18.9        2.6
Zhoushan, Zhejiang  Sinochem      End 2007       31.4        3.8
----------------------------------------------------------------
 SECOND PHASE
 Total storage capacity in the second phase was initially
planned at 26.8 million cubic metres of oil, or 170 million
barrels, but real capacity could top the plan as local
governments were actively lobbying for more projects to improve
regional oil supply security.
 The National Energy Administration has also enlisted private
firms to store crude oil for the government. [ID:nTOE64N052]
 In choosing sites for the second phase, China will prioritise
underground storage tanks and landlocked regions.
 Liu Qi, a deputy chief of the National Energy Administration,
said that some second phase storage will be the result of
expanding first phase facilities.
 Although the government only announced the launch of second
phase construction in September 2009, media reports have said at
least 3 million cubic metres (19 million barrels) of second phase
tanks have come onstream since the end of 2008.
 The Chinese media reports said that by the end of 2009 or
early 2010, some 69 million barrels of storage capacity may be
added as part of the second phase and almost all will be ready
for crude storage by the end of 2011.
 The locations below were reported as the potential sites for
the stockpiling plans, but the government has never officially
confirmed all selected sites for the second phase.
 The capacity is in millions of barrels and investments in
billions of yuan.
---------------------------------------------------------------
 Site                 Builder    Completion    Size  Investment
 Dushanzi 1, Xinjiang  CNPC      July 2011     18.8     26.5  
 Dushanzi 2, Xinjiang  CNPC         NA         15.1     NA    
 Lanzhou, Gansu        CNPC       H1 2011      18.9     2.4   
 Zhoushan, Zhejiang^  Sinochem      NA         18.8     NA    
 Shanshan 1, Xinjiang  CNPC        2008         6.3     6.5*  
 Shanshan 2, Xinjiang  CNPC     late 2009      44.0           
 Caofeidian, Hebei    Sinopec    end 2011      38.0     NA    
 Huangdao, Shangdong   NA           NA         18.9     2.2   
 Tianjin              Sinopec    end 2011      40.2     NA    
 Huizhou, Guangdong    CNOOC        NA         31.5     NA    
 Jintan, Jiangsu       CNPC         NA         18.9     NA    
 Jinzhou, Liaoning     CNPC         NA         18.9     2.26  
 Tieling, Liaoning     CNPC       end 2009      7.3     NA    
 Zhanjiang, Guangdong Sinopec       NA         44.0     NA    
 --------------------------------------------------------------
 ^ Media reports say work started in early 2009 to expand the
first phase of 5 million cubic metres (31.4 million barrels)
 * Investment for Shanshan 1 and 2.
 THIRD PHASE
 Total capacity of 28 million tonnes, or 204 million barrels,
to be built in underground storage in landlocked regions of
China. Chinese media has said they will be built by 2020.
 (Reporting by Jim Bai and Aizhu Chen; Editing by Ken Wills)




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