China goes ahead with reserves push

China goes ahead with reserves push

China has approved a plan to build a second phase of state crude reserves and construction will begin this year, Zhang Guobao, head of the National Energy Administration, said today.
China aims eventually to meet the OECD standard of stockpiling enough oil to cover 90 days of consumption, which has prevented the world's second-largest oil consuming country from joining the International Energy Agency, he said.
"I have often been asked why we haven't joined the IEA. It's not because we don't want to join the IEA, but we're not allowed to join because there is a criterion to have oil reserves equal to 90 days of consumption," Zhang said in an interview, reported Reuters.