China's first phase of oil reserve project completed

China has completed the first phase of the national strategic oil reserve project with the average cost of $ 58 per barrel in 2009, according to a senior energy official.
China signed loan-for-oil deals worth over $ 60 bn with Russia, Brazil and Venezuela last year, securing a crude oil supply of 75 mm tons annually, said Zhang Guobao, head of the National Administration of Energy. The amount is equivalent to 42 % of China's crude oil import in 2008.

China's crude oil output has maintained downward trend since last year. The nation imported record 21.26 mm tons last December and imports in 2009 hit 204 mm tons, according to customs data. The country's crude foreign dependence was expected to achieve 52 %.
China took advantage of the slowing energy demand in the global market caused by the financial crisis to implement the "go out" energy strategy, Zhang said.

Zhang also said that China's crude oil pipeline project was settled after over ten year's negotiation. The pipeline construction has started in both Russia and China and was scheduled to be operational by the end of this year, with an annual throughput of 15 mm tons.
China had invested yuan 1.41 tn on fixed-assets of power, coal and coal industries in the first 11 months of last year, up 17 % year-on-year.