China will complete the construction of its first four strategic oil reserves by the end of this year. China started to build its strategic oil reserves in 2004, in order to fend off the risk of oil shortages and reduce the impact of oil price fluctuations.

The government plans to build strategic oil reserves in three phases over 15 years, involving an estimated investment of 100 billion yuan (14.6 billion U.S. dollars).

The first four reserves, located in Dalian, Qingdao, Ningbo and Zhoushan, are expected to maintain strategic oil reserves equivalent to 30 days of imports in 2010.

This entry was posted on Wednesday, August 20th, 2008 at 12:31 pm and is filed under Asia, China, oil. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.