The construction of the largest underground commercial oil reserve in China began in Zhejiang province on December 9.
China breaks ground on a 3 million cubic meter oil storage cavern in Ningbo, Zhejiang. (Video: CCTV)
Located in the city of Ningbo, the oil storage cavern project is independently designed and developed by the China National Offshore Oil Corporation (CNOOC). The project includes underground caverns for crude oil storage with a total capacity of 3 million cubic meters, along with surface facilities to support operations and transportation. Upon completion, the facility is expected to enhance the rapid storage, processing, and circulation of imported crude oil, ensuring a stable supply of oil and gas domestically.
Workers will excavate the caverns from solid rock to store oil, utilizing stable groundwater pressure to create impermeable valves, providing high safety and low leakage rates. By applying core technologies such as full-scale storage testing, the oil storage caverns can operate for 50 years without maintenance, according to Wu Guangzeng, the Chief Engineer of CNOOC’s petrochemical division.
The project will enhance rapid storage, processing, and circulation of imported crude oil.
The project is set to be completed and operational by the end of 2026, according to Liu Daping, President of CNOOC’s petrochemical import and export division. The facility will provide a stable source of crude oil for eastern China and along the Yangtze River, helping to address energy emergency situations and promote a balance in local oil supply and demand.
Currently, China’s commercial oil storage primarily consists of above-ground tanks and underground caverns sealed with groundwater. Compared to above-ground tanks, the latter option allows for a reduction in construction and operational costs by approximately 20% and 50%, respectively. It also offers environmental advantages, saving about 63.3 hectares of land for the same scale, while addressing issues of oil loss due to evaporation. Over 200 similar oil storage caverns have been built worldwide.
