SINGAPORE: Chinese private refiner andpolyestermakerHengli Petrochemical Corphas more than doubled itscrude oil storage baseto about 43 million barrels, one of the largest held by asingle refinery, two company officials said.
The firm added 3.6 million cubic metres of new crude oil tankage space at Changxin island in Dalian in northeast China where its 400,000-barrels per day (bpd) refinery is located, bringing its total crude oil tank farm to 6.8 million cubic metres, or 43 million barrels, said a company spokesman based in China.
“The new tanks will allow us to further optimize crude oil procurement and better manage cost,” said the spokesman, who asked not be named.
Hengli gets nearly all its crude oil needs from imports, including a long-term supply pact with Saudi Arabia.
“We shall increase our crude oil stockpile when oil prices dive to very low levels again in the future,” the spokesman said.
Construction began in March and by early July 24 tanks, each of 150,000 cubic metres in volume, were completed, he added.
The quick construction was spurred by oil prices that slumped to decade-lows this year amid a price war between top global producers and as the coronavirus smashed oil demand.
The tanks were ready for use from around October, a second company executive told an industry seminar last month.
At 43 million barrels, Hengli can cover about 107 days of its refinery processing requirement, far exceeding the normal operational inventory of 20 to 25 days held by a typical Chinese refinery.