The expansion of a tank farm in Dalian in north eastern China has been approved by The Shanghai International Energy Exchange (INE), which is an international exchange trading in crude oil, natural gas and petrochemical derivatives. INE said the move is to increase the capacity for crude oil futures and added that the increase equates to around 2.5m bbl.
China will expand its oil storage capacity and also pursue unconventional gas exploration to improve energy supply security, according to a statement made to the national parliament, the National People’s Congress.
The Dalian PetroChina International Warehousing & Transportation Company will increase its active oil storage in the Dalian Bonded Area from 800,000 m3 to 1.2m m3.
It will now offer designated delivery storage facility services, strengthen operational management and abide by all regulations, according to INE.
The country may also take in another 230 million barrels of cheap oil according to shipping data, at least over the next three months, with a fleet of 117 VLCCs en route to Chinese ports, due to arrive between mid-May and mid-August.
But China’s crude oil inventories are beginning to decline after hitting a record in April, which has sparked optimism about demand revival in the key oil market.
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