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The construction of oil reserve bases in China will be accelerated between now and 2010 to meet rising market demand for energy, according to a leading Chinese energy official.

Ma Kai, minister in charge of the National Development and Reform Commission and director of the newly-built National Energy Office, said four petroleum bases, located in Zhejiang, Shandong and Liaoning provinces respectively, will be completed this year, with a total storage capacity of between 10 million and 12 million tons.

The government is considering the location of new bases for the second phase of the project, which are expected to store 28 million tons of petroleum. The third phase, also with a storage capacity of 28 million tons, is still under planning.

China set up a task force earlier this year to draft the energy law which can ensure national economic security, energy exploitation and international energy cooperation.

Ma said energy conservation is a fundamental way for China to resolve its energy-shortage problem. The minister urged local governments to explore renewable energy resources.

Overseas cooperation in crude oil production will also be strengthened in future, said Ma.

(Xinhua News Agency July 11, 2006)