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China Using Commercial Oil Tanks For SPR; China Has Filled 70%-80% Of SPR (ICIS)

China Using Commercial Oil Tanks for Strategic Stockpiles

By Bloomberg News

(Bloomberg) -- China stockpiled 26.1m mt of crude for emergency use as of mid-2015, incl. supplies in 8 strategic reserve sites, as well as commercial storage tanks, National Bureau of Statistics says in statement on website.

  • SPR sites in operation as of mid-2015 have total storage capacity of 28.6m cu m
    • Above-ground storage sites at Zhoushan, Zhenhai, Dalian, Dushanzi, Lanzhou, Tianjin and Huangdao; underground storage at Huangdao
  • "It's the first time that the government confirms it has been using commercial tanks for SPR stockpile use and that reserve sites in Tianjin and Huangdao are in operation," Jean Zou, analyst at ICIS China, says by phone from Guangzhou. "They need to lease commercial sites probably because construction of new state facilities have been slower than expected and they want to take advantage of the oil price slump"

China Has Filled 70%-80% of Strategic Oil Reserves: ICIS

By Bloomberg News

(Bloomberg) -- China may have filled 70%-80% of its operational strategic petroleum reserve capacity, Jean Zou, analyst at Shanghai-based commodity researcher, says by phone Monday, citing ICIS calculations from govt data.

  • NOTE: China stockpiled 26.1m mt of crude for emergency use as of mid-2015, incl. supplies in 8 strategic reserve sites w/ total capacity of 28.6m cu m, accord. to statement Friday from National Bureau of Statistics
  • "Based on the NBS statement, we think that as of mid-year, China had filled 67.2 percent of SPR capacity that was in operation," Zou says. "Huangdao's second-phase project has added about 2 million tons of crude since mid-2015 and, taking into account gains in other sites, the stockpiling level may be about 70 to 80 percent currently"

This confirms what we have been suspecting all along -- China is using commercial storage for SPR, and to mid-2015 it was a total of 26.1mill mt x 7.30 = 190mill bbls.

This is equivalent to over 900,000 bpd - immense volume, by any reckoning.

We can just imagine how much more has been added over the past 3-4 months