Tianjin has been selected for development into a world-class petrochemical industry base and national crude-oil reserve hub within 10 years, with an annual 40 million ton refining capacity and 2.5 million tons of ethylene production, and a 30 million cubic meter (cu m) crude oil reserve.

China Daily learned on the sidelines of the 15th People's Congress of Tianjin that during the 12th Five-Year Plan (2011-2015), intensive efforts are planned to mold Tianjin into a world-class center by 2020, with a crude oil refinery and ethylene cracker in the Nangang Industrial Zone of the Tianjin Economical-Technological Development Area.

"With the equipment to produce 1.2 million tons of ethylene annually, Tianjin is already among the highest-rated petrochemical industry cities. The National Development and Reform Committee (NDRC) has agreed to its constructing an ethylene cracker with another 1.2 million ton capacity annually.

And the construction of the Sino-Russian 13 million ton oil refinery project, with a 36.6 billion yuan ($5.56 billion) investment, is in full swing," He Shushan, head of the administrative committee of Tianjin Economical-Technological Development Area, told China Daily.

The Sino-Russian Oriental Petroleum & Chemical (Tianjin) Co Ltd oil refinery will process Russian crude oil, whose products include gasoline, diesel, aviation kerosene and liquefied gas. The project is a major step toward transforming the Nangang Industrial Zone into a world-class petrochemical base and integrated-function area.

When it opens, it will have the capacity to generate 62.2 billion yuan in annual sales revenues.

In 2010, Sinopec completed and opened China's largest combined refinery and ethylene cracker in Tianjin. The facility, which has world-class equipment, has a capacity of 1 million tons of ethylene and 10 million tons of refined oil annually.

According to He, a China National Pertoleum Corp (CNPC) 1 million cu m crude-oil commercial reserve project was completed in December and has met the qualifications.

Built with a total investment of 980 million yuan, this facility aims to store imported crude oil together with other commercial crude-oil projects of CNPC in Shanshan of the Xinjiang Uygur Autonomous Region, and Lanzhou of Gansu and Tieling of Liaoning provinces.

Meanwhile, the construction of a Sinopec crude-oil commercial reserve base in Tianjin began in May, with a planed capacity of 3.2 million cu m, to help satisfy the increasing demand for petroleum resources in North China - especially Beijing, Tianjin, and Hebei province - and ensure national oil security.

"Under the long-term plan of the Nangang Industrial Zone, the total crude-oil reserve will amount to more than 30 million cubic meters," He said.

The construction of the crude-oil reserve project is a crucial addition to the national reserve system, which is important in stabilizing China's energy supply market, coping with emergencies and controlling abnormal supply and demand oil price fluctuations.