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[January 23, 2006]
DJ Saudi Arabia To Build S China Oil Storage Site -Report
(Comtex Business Via Thomson Dialog NewsEdge)SINGAPORE, Jan 23, 2006 (Dow Jones Commodities News via Comtex) --Saudi Arabia and China have agreed to build a huge crude oil storage facility on southern China's Hainan Island, the Beijing Morning Post reported Tuesday.
The planned storage capacity of the tank farm will be 25 million to 30 million metric tons, it said, without providing a timeframe for the project.
The agreement on the storage site is part of a series of bilateral energy and trade pacts signed by China and Saudi Arabia Monday during a three-day visit by Saudi King Abdullah, the newspaper said. He was accompanied by a delegation that includes Oil Minister Ali Naimi.
It follows an agreement in 2001 between the two countries to build a $3.5 billion refinery in southern China's Fujian province.
The storage site is expected to supply oil to the refinery and house part of China's oil reserves, said the report.
Saudi Arabia is the world's largest oil exporter and China is the world's second largest oil consumer.
China imported more than 20 million tons of crude oil from Saudi Arabia last year, or 440,000 b/d, accounting for around 14% of its total crude imports.
Newspaper Web site:
-Renya Peng contributed to this story; Dow Jones Newswires; (8610) 6588 5848; firstname.lastname@example.org
-Edited by George Bernard
(END) Dow Jones Newswires
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