New China Crude Oil Storage Tanks Due Operation from End of August

Published By : 30 Jul 2015 | Published By : QYRESEARCH

Oil prices continue their receding growth in the global market but demand is high from oil traders who are bidding high on storage of crude oil in the hopes that the prices will recover soon enough to pay off their costs for holding crude oil.

In a recent bill, China had loosened the rules regarding import of crude oil and had also allowed private companies, along with the earlier importers – state-owned crude processing companies, to start importing crude from international oil markets.

In the resulting rise in demand, many privately owned oil companies have started developing their storage units. Vopak, the company known as the largest autonomous tank terminal operator of the world, is all set to start its operations with a 8.2 million barrels (1.3 million cubic metre) crude storage facilityin the province of Hainan in the end of August.

This is nearly three months behind the schedule expected by some industry experts at the start of this year. The company has declined to comment on its potential clients, but has confirmed that the operations at the tank would start in the third quarter of the year.

It is being said that Vopak is in advanced negotiations with potential clients of the crude it is storing, including the commodity trading company Noble Group and the National Iranian Oil Company.

Another company CEFC Energy is also slated to open its 17.6 million barrels storage facility by early October of this year. The facility will include 2.4 million cubic metres capacity for crude oil and the remainder for the storage of light transportation fuels.

Tanks of CEFC are also located near the Vopak site, are also a month behind the schedule. 
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