China accelerates oil reserve build-up amid geopolitical tensions

China is rapidly expanding its crude oil reserve capacity, with state-run oil giants Sinopec and CNOOC set to add at least 169 million barrels of storage across 11 sites by the end of 2026, according to public data, traders, and industry experts.

Of that, 37 million barrels of capacity have already been built. Once completed, the new storage could cover two weeks of China’s net crude imports — a significant volume for the world’s largest oil importer, Reuters reports.

Beijing’s push to stockpile crude intensified following Russia’s 2022 invasion of Ukraine, which disrupted global energy flows and exposed China’s strategic vulnerability due to its heavy reliance on seaborne oil imports. The urgency has grown this year amid heightened risks involving major suppliers Russia and Iran.

"China's stockbuilding strategy has always been to have sufficient energy security for the nation that is highly dependent on crude imports," said June Goh, Singapore-based analyst at Sparta Commodities. "The agenda has become more urgent this year with heightened geopolitical risks surrounding Russia and Iran."

Reuters calculations, based on trade data, suggest the reserve expansion nearly matches the 180–190 million barrels of capacity added over the past five years, according to analytics firms Vortexa and Kpler.

Beijing has quietly issued stockpiling mandates to state-run firms since late 2023. In July, Energy Aspects reported that China planned to purchase 140 million barrels for strategic reserves, with deliveries through March 2026. S&P Global Commodity Insights estimated China has been stockpiling an average of 530,000 barrels per day in 2025, supporting global prices as OPEC+ unwinds production cuts.

China’s reserves now blur the line between traditional Strategic Petroleum Reserve (SPR) sites and more flexible commercial storage overseen by the National Food and Strategic Reserves Administration. A law passed in January formally integrated both under one national reserve system, requiring state firms to hold government-supervised “social responsibility” reserves.

Projects like a 20-million-barrel Sinopec site in Hainan and two 11-million-barrel sites in Shaanxi have been described locally as contributing to national reserves, though listed as commercial.

China’s last official reserve update was in 2017, citing 238 million barrels across nine SPR bases. More recent estimates suggest rapid growth. Kpler places China’s total onshore reserves and commercial stocks at 799 million barrels by September 2025, up 109 million barrels from early 2023. Vortexa estimates 735 million barrels under state control.

Industry sources say China could be targeting enough capacity to cover six months of imports — around 2 billion barrels — far above the 90-day minimum required for International Energy Agency members, though China is not a member. The U.S. SPR held 404 million barrels as of August, but the U.S. is a net oil exporter.

Underground SPR sites reported in 2021 with 110 million barrels of capacity are not included in private estimates.

By Sabina Mammadli