CNPC Signs Agreement to Build 1 Million-Cubic-Meter Commercial Crude Oil Storage Facility in Tianjin

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Researched by Industrial Info Resources (Sugar Land, Texas)--The signing ceremony of the Investment Cooperation Agreement for China National Petroleum Corporation's (CNPC) (Beijing) 1 million-cubic-meter commercial crude oil storage project was held in the Investment Service Center of Tianjin Development Zone on February 8, 2010. The project will be an important part of the storage and logistic industry in Nangang Industry Park, the government of Tianjin Binhan New District recently announced.

According to the agreement, CNPC Commercial Oil Storage Branch Company, a subsidiary of CNPC, will build a 1 million-cubic-meter commercial crude oil storage facility in Nangang Industry Park, with a total investment of about $143 million. The project is mainly comprised of 10 newly constructed crude oil storage tanks of 100,000 cubic meters each, with a pump room; metering room; associated instruments; and power, water and heat supply facilities. CNPC Dagang Petrochemical Company (Tianjin) is will be responsible for the construction management of the project. According to the schedule, construction is expected to begin in March 2010, and all main works will be completed by the end of this year.

"The project will be mainly used to store crude oil imported from abroad, and will be a good supplement to the national oil reserve system," said Pang Xiaodong, the general manager of Dagang Petrochemical.

Five storage and logistic enterprises are settled in the Nangang Industry Park, and another batch soon will be settled. "The crude oil storage capacity of Nangang Industry Park will be eventually expanded to 10 million cubic meters in the future," said staff from the Administration Commission of Nangang Industry Park.

Construction and operation of these projects will play an active role in stabilizing the supply of the energy market, in repressing abnormal price fluctuation in the domestic market, and in dealing with the shocks in case of an emergency.

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