Chinese language - Sinopec establishing oil reserve firm

Home Business Politics Life Culture��Edu Sci��Tech Sports Photos

��Search

  China Observer

  Photos

�� Longmen Grotto becomes top-grade tourism area

�� Urbanites flock to enjoy rural meals

�� China marks Int'l Museum Day

Coconut Oil, Flash Mp3 Player , Fruit , Electric Scooter, Leather Sofa,
Swimwear, Beverage Dispenser, Kitchen Furniture, GSM Phone, Juice
Concentrate, Tractor Fertilizer, Car Engine , Electric Atv, Automotive
Switch , Display Showcase, Zinc Sulphate, Access Point, Network Card,
Laptop, Recovery Card, Aluminium Profile, Granite Countertop, Wind
Generator, Power Strip, Milk Powder, Ice Cream, Sweet Corn, Ketchup,
Yellow Tea, Instant Noodle, Frozen Seafood, Apple Juice, Nescafe,
Beverage Container, Baby Food, Digital Photo Frame, Silk Flower, Bamboo
Handicraft, Christmas Tree, Badge, Candle.

��Home>>Business

Sinopec establishing oil reserve firm

www.chinanews.cn 2007-05-19 17:18:05

(Source: China Daily)

An oil reserve site for Sinopce in Zhejiang Province. [file]

May 19 - Asia's top refiner is busy building up China's first commercial
oil reserve company as the country focuses more on securing vital energy
supplies.
Sinopec spokesman Huang Wensheng revealed to China Daily exclusively on
Friday that the refiner had set up its own corporate oil reserves,
spreading under subsidiaries of the group company.
"A unified administration can trim the operation cost and manage the
reserves in an efficient and integrated approach," he said.
Huang did not elaborate on details when the firm will be established and
how large the reserve will be under its operation. But he stressed that
Sinopec's tanks throughout China can accommodate enough commercial
reserves.
A senior press official from Sinopec Group confirmed the move, saying
Sinopec had realized the necessity of streamlining the administration and
operation of corporate oil reserves.
"It is an internationally recognized tendency for a country to build up
oil reserves at both State and corporate levels," the press official said.
"That is why we are taking the lead to set up the company taking care of
our commercial reserves. It is easier and more effective for an
independent company to operate and manage those reserves."
China is investigating every means to secure fuel supply, as demand
increases.
In addition to State strategic oil reserves, China is pinning hopes on
corporate reserves to leverage demand and supply. The proposed first
Energy Law of the country will regulate the necessity of setting
commercial oil reserves at corporate level, according to key drafters.
The law under drafting may require State-owned large and medium-sized oil
companies to establish corporate reserves to maintain effective oil
supplies, Wu Zhonghu, one of the core law drafters, said.
Sinopec, as Asia's largest refiner, imported 70 percent of crude it
needed for oil refining business last year. Corporate reserves will play
an extremely important role for the firm to fend off additional risks
brought by fluctuations in global oil prices, Han Xuegong, a senior
consultant with China National Petroleum Corporation (CNPC), said.
A source from PetroChina, CNPC's listed arm, revealed to China Daily that
his company is also working on corporate reserves, but no details are
available at this time.
Shanghai Securities News reported on Friday that Sinochem Corporation had
purchased 250,000 tons of crude from the Middle East and will store them
in Daishan as corporate reserves this month. Sinochem refused to make any
comment on the report on Friday.
The government can give some incentives to encourage large companies
setting corporate reserves. But it is also oil companies' responsibility
to leverage oil supply and demand - a common practice in market-oriented
countries, according to Jiang Xinmin, an analyst with the Energy Research
Institute under the National Development and Reform Commission, China's
top economic planner.
The Chinese government approved four national strategic oil reserve sites
in 2004. They are Ningbo and Daishan of Zhejiang Province, Huangdao of
East China's Shandong Province and Dalian in Liaoning Province.
The NDRC announced that the country's first strategic oil reserve base in
Ningbo had been put into operation. Insiders revealed that the Daishan
site has also been in operation.

Photos More

Flat roof
Swing
Feast
Cattle beauty

Copyright� 2004 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
Disclaimer: viewpoints in the website do not represent China News Service

Learn Chinese, Chinese Mandarin, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, Beijing 2008 Olympics, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing, Travel to Tibet