Chinese oil companies to set up their own reserves - state media |
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Thu, 15 Feb 2007 04:27
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BEIJING (XFN-ASIA) - The government is drafting an energy law requiring state-owned energy companies to set up corporate oil reserves to supplement national reserves currently being built up, the China Daily reported.'We are seriously weighing the option of constituting national oil reserves, both at the strategic and commercial level,' the report quoted, Wu Zhonghu, one of the core law drafters, as saying.He added companies that build reserves may expect state subsidies to cover operating and management expenses, and said he hoped the State Council would review the draft law by the end of this year.The law, which is designed to help the country cope with emergencies and to maintain an effective fuel supply, is being proposed as China's booming economy has led to increasing demand for energy and production materials.China has already approved four national strategic oil reserve sites in east and northeastern parts of the country while a base in Ningbo in the eastern province of Zhejing has just been put into operation recently, the report said.afp
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China to include strategic crude reserves system in new energy law - report 