China plans to set up petroleum reserves organization

Chinese government is drafting the implementation project of strategy petroleum reserves. It is said that various plans have been reviewed by the decision making departments involved, and it is waiting for the final decision to set up the project.
China has not planed to set up a "Ministry of Energy" in charge of comprehensive energy issues. State Development and Planning Commission has set up a macro management organization similar to "National petroleum reserves office". Meanwhile, the National Bureau of Materials Reserves will be responsible for the petroleum reserves planning and operating.

According to the draft plan, since 2003, China will construct land crude oil reserving repertory in southeast China. And China plans to build up a crude oil reserves by 2005 capable of supply 30-day importing volume. By year 2010, the oil reserves volume will equal to 40-day importing volume.
In terms of strategic petroleum reserves projects, China National Petroleum Corporation, China Petrol Chemical Group Corporation, China National Offshore Oil Corporation, Sinopec, and other enterprises entitled to handle petroleum import and export trade can take part in it.

Chen Huai, an expert from Development Research Centre of the State Council (DRC) is in charge of the recent "China petroleum safety policy study" project. The project report states that because most existing crude oil and oil products reserves belong to supporting facility of production and circulation, they cannot be used as strategy reserves.
A majority of experts believe that the strategy reserves must be invested, owned, and controlled by central government. Only in this way, can it meet the requirement of emergency situation and crisis.