In a statement the state-run firm said, “The rapid demand growth we are seeing now requires Sinopec to build a new 300,000-tonne sized terminal every other year. Terminals of this size can handle 20 million tonnes of crude.”

“The crude storages will be linked to the 645 km Ningbo-Nanjing crude pipeline, which commenced operation in May, and a planned 960 km crude line along the Yangtze River, scheduled for operation by the end of 2006 and with a capacity to feed 555,000 bpd crude oil to inland plants,” added the firm.

China is set to import up to 120 million tonnes of crude this year of which 80% will be handled by Sinopec.