PetroChina to build oil reserve tank in Xinjiang

Top Chinese oil and gas firm PetroChina (0857.HK: Quote, Profile , Research)(PTR.N: Quote, Profile , Research) plans to build a commercial crude oil reserve tank in northwestern China's Xinjiang region, the Shanghai Securities News reported, citing a company source.

The company will invest 6.5 billion yuan ($855.6 million) in the project, which will have a designed storage capacity of 8.1 million cubic metres (290 million cubic feet), the newspaper said.

Construction of the first phase of the project, which will have a storage capacity of one million cubic metres, will start in August and be completed in late 2008, the report said.

PetroChina officials were not immediately available for comment.

In late June, PetroChina started building another commercial crude oil reserve storage facility in the northeastern province of Liaoning, the newspaper said.

PetroChina will invest one billion yuan to construct eight tanks, with a storage capacity of 100,000 cubic metres each, it said, adding the project is scheduled for completion in October 2008. ($1=7.597 Yuan)