The project, in the city of Yangzhong along the Middle-Lower Yangtze River, is scheduled to begin construction in 2010, with total investment of 20 billion yuan ($2.93 billion).

Outlined in the plan, CNPC, parent of listed arm PetroChina will build a refined fuel reserve, a petrochemical logistics centre, and a chemical raw materials producing base in the region, the report said.

The fuel reserve was in line with China’s plan to boost refined oil products storage capacity as part of efforts to enhance energy security and improve the country’s ability to meet rising demand.

A refined oil pipeline with a total length of 1,000 kilometres will also be built as an auxiliary facility.