A center to manage the country's strategic oil reserves was set up yesterday, says the top economic planning agency.
It will serve as the administrative body for the nation's oil reserve system and be responsible for stockpiling crude and releasing reserves, said a statement from the National Development and Reform Commission (NDRC).
The center will also monitor oil supply and demand on the domestic and international markets, and enhance China's energy security, it said.
Han Xiaoping, an energy analyst with Beijing Falcon Pioneer Technology Co Ltd, said: "A sound oil reserve system will help offset oil supply risks when there is an interruption.
"It will also reduce the impact of fluctuating global oil prices on the domestic market."
China is the world's second-largest oil consumer after the United States.
The country imported 145 million tons of crude and 36 million tons of refined oil last year, according to figures from the General Administration of Customs.
It began to build strategic oil reserves in three coastal provinces in 2004.
The first four bases are in Dalian, Qingdao, Ningbo and Zhoushan.
The Ningbo and Zhoushan bases began stockpiling last year, while the other two are expected to start operations within a year, sources close to the project told China Daily.
By the end of 2010, China plans to have 12 million tons of strategic oil reserves, said NDRC sources. Current strategic oil reserves are between 2 million and 3 million tons.
NDRC Vice-Minister Chen Deming said earlier that by 2010, China's oil reserves will be equivalent to one month of net imports of crude oil.
By 2020, the volume will increase to the amount equal to three months' of imports, he said.
Last month, the authorities started to develop a strategic oil reserve in the Wanzhou district of Chongqing Municipality. It will form part of the second phase of the national strategic oil reserve plan.
NDRC sources said that when the second phase is completed, the country will have capacity for 28 million tons of oil reserves.
Authorities in several provinces, including Guangdong and Hainan, are currently in discussions with the central government to build strategic oil reserves in their regions.
Han said the central government will not limit strategic oil reserves to the eastern region.
Questions:
1. What will the national center for oil reserves do?
2. How much crude oil did China import last year?
3. By what year does China want to have 12 million tons of strategic oil reserves?
Answers:
1.It will be responsible for stockpiling crude and releasing reserves, and monitor oil supply and demand in domestic and international markets.
2.145 million tons.
3.2010.
（英語點津 Celene 編輯）
About the broadcaster:
Bernice Chan is a foreign expert at China Daily Website. Originally from Vancouver, Canada, Bernice has written for newspapers and magazines in Hong Kong and most recently worked as a broadcaster for the Canadian Broadcasting Corporation, producing current affairs shows and documentaries.
