After construction is completed, the oil terminal will have an annual oil turnover of 400,000 tons and can meet Tibet’s social and economic development demand for refined oil products in a certain period of time. Meanwhile, it will better guarantee the supply for refined oil products in Tibet and end Tibet’s historical lack of a railway oil terminal in the region.

With Tibet’s rapid social and economic development in recent years, the problem of ever-increasing energy demands and long supply chains of refined oil products from Tibet has become more serious. The pressure to guarantee Tibet’s supply of refined oil products is gradually increasing.

Wang Jun, general manager of PetroChina Tibet Marketing Company, said in order to further secure an adequate supply of refined oil products in Tibet, reduce transportation costs, relieve the pressure of oil products transportation and fully make use of the advantages of the Qinghai-Tibet Railway, PetroChina decided to build a railway oil terminal in Lhasa for the reception and storage of gasoline, diesel and aviation kerosene. The project is expected to finish construction and begin operations by the end of 2010.