China approves plan to set up fuel reserves

China has approved a plan to set up 10 million tons of refined fuel state reserves by 2011. The plan is the government’s first official program to establish sizeable emergency fuel stockpiles in addition to crude oil, an official said, without specifying which refined products are included. When in place, the plan will boost China’s apparent fuel demand by enhancing the country’s total fuel stocks by about one month’s worth and would also help optimize refinery operations, as China is set to add 1 million barrels per day of crude processing capacity by the end of 2009. China’s current fuel inventories held by the two oil majors CNPC and Sinopec–45.2 million barrels of diesel fuel and 25 million barrels of gasoline at the end of March–are enough to cover 16 days of national consumption. (May 6, 2009)