China started buying higher-sulfur crude to fill its emergency oil-storage reserve, China Business Journal reported on Feb. 25, citing people involved in the purchase that it didn’t name.
All the tanks in the second phase of China’s emergency stockpile are able to store higher-sulfur crude, the newspaper said. The country stored mostly light crude in its first phase development, it said. The emergency stockpile currently has a capacity of 142 million barrels, it said, citing an internal document.
Li Pumin, a spokesman at National Development and Reform Commission that oversees the emergency-oil stockpile program, didn’t answer two calls to his office.
China finished the first phase of its emergency reserves with a capacity of 103.2 million barrels of oil in 2009 at a cost of $58 a barrel, according to government data. The second phase, able to store 168.6 million barrels, is scheduled to be completed by early 2013.
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