China is accelerating the construction of new oil reserve sites as part of a major effort to build up its crude stockpiles. The push gained urgency after the Russia-Ukraine war disrupted global energy flows and has intensified in 2025, according to public data, traders, and industry experts.
State-owned companies including Sinopec and CNOOC are on track to add 169 million barrels of oil storage capacity across 11 sites during 2025 and 2026. About 37 million barrels of capacity have already been completed. Once finished, the new sites will hold roughly two weeks’ worth of China’s crude imports — a major boost for the world’s largest oil importer.
China’s reserve build-up — averaging 530,000 barrels per day so far in 2025 — is absorbing excess global supply and helping support prices. Analysts expect the stockpiling to continue at least through early 2026, especially with oil prices recently falling below $70 per barrel.
The country’s growing dependence on foreign oil has long been seen as a strategic weakness. To address this, Beijing is expanding storage, diversifying import sources, and keeping up domestic production. Meanwhile, renewable energy investments and EV adoption are slowing gasoline and diesel demand, with oil consumption likely to peak in 2027.
The construction pace is striking: the planned capacity for 2025–2026 nearly matches the 180–190 million barrels built in the previous five years, according to energy analytics firms. Since late 2023, Beijing has reportedly instructed state-owned firms to stockpile an additional 140 million barrels by March 2026.
“China’s stockbuilding strategy has always been to have sufficient energy security for a nation highly dependent on crude imports,” said June Goh, an analyst at Sparta Commodities. “The agenda has become more urgent this year with heightened geopolitical risks surrounding Russia and Iran.”
