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China begins construction of new oil storage hub

02nd October 2012

CNOOC starts construction of USD 197m first phase of berth and oil products storage hub bordering on East China Sea

China begins construction of new oil storage hub
The project will have a total storage capacity of 1.2 million cubic meters and span 248,000 square meters

China’s largest listed offshore oil and gas producer begins construction of storage hub along the country’s eastern coast, it emerged over the weekend, as a means to boost its refining footprint in an area close to disputed and potentially energy rich islands in the East China Sea.

China National Offshore Oil Corp (CNOOC) has begun the construction of the USD 197m first phase of a berth and oil products storage hub at the port of Yantai in the northeastern Shandong province, CNOOC announced on Saturday.

The project will have a total storage capacity of 1.2 million cubic meters and span 248,000 square meters, CNOOC said. It will boast 15 floating storage tanks, nine with 100,000 cubic meters of capacity each and six with 50,000 cubic meters each.

CNOOC subsidiary CNOOC Petrochemicals Import & Export owns a 51 per cent stake in the project, the remaining 49 per cent owned by Yantai port operator, Yantai Port Group.

Commercial operations are scheduled to start in July 2014.

The Shandong province borders on the East China Sea, an area marked by recent territorial disputes between China and Japan over islands which experts say may be rich in energy reserves. Taiwan has also laid claims to the island, called Senkaku in Japan and Diaoyu in China.

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