London, United Kingdom (PressExposure) November 26, 2009 -- China is the second largest oil consumer in the world and the third largest oil importer after the United States and Japan. With over 175 million tonnes of crude oil imports in 2008, China's strategic oil reserves are relatively low. To secure its future energy needs, the nation has produced a three-phase blueprint to build national petroleum reserve and has started setting up a national oil reserve bases since 2003.
Strategic Petroleum Reserves (SPR) are quantities of crude oil or petroleum products held either to facilitate draw-downs to reduce the economic impact of crude oil supply disruptions or to prevent purposeful reductions in crude oil supply for political ends. Under the first phase of Chinaâs crude oil reserve plan, four storage bases are being built with a total capacity of 16.4 million cubic meters of oil, which is equivalent to 30 days supply for China.
The second phase of the country's strategic petroleum oil reserve plan, which consists of building eight storage bases with capacity of 26.8 million cubic meters, has been approved by Chinaâs State Council. China aims to set up reserves capable of meeting 90 to 100 days of domestic consumption of crude oil, which will come from long-term, supply deals that China's national oil companies have signed with countries like Russia, Brazil, and Venezuela. With rising petroleum demand, the strategic oil reserve will help the country to sustain for at least three months on its reserves in the event of any major supply disruption in the future.
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