China’s CNOOC Started Construction of Underground Oil Reserve

CNOOC has started the construction of an underground fuel reserve in Ningbo which will be able to store 2.5mn tons of oil once completed according to South China Morning Post.

• The project is expected to be completed by 2026 and will provide stable crude oil supplies to eastern China and along the Yangtze River, CNOOC chairman Liu Daping said.
• State news agency Xinhua reported on Sunday that the commercial oil reserve project in Ningbo, Zhejiang province, would be the first commercial facility of its kind in the country and more cost-efficient than traditional methods.
• An expert at China CNPC Think Tank said earlier this month the country should explore underground spaces to expand its storage capacity for natural gas and oil. China should study areas to expand oil reserves to 90 days of consumption, or 180-200mn tons by 2023.