China is rapidly expanding its oil reserve capacity as part of a strategic campaign to strengthen its energy security, a push that has gained urgency following Russia’s invasion of Ukraine and continued geopolitical instability, according to Reuters.
State-owned energy companies including Sinopec and CNOOC are expected to add at least 169 million barrels of storage across 11 sites during 2025 and 2026, based on information from public reports, government documents, and company websites. Of that total, about 37 million barrels of capacity have already been completed, the data shows. Once finished, the new sites will be able to store roughly two weeks of China’s net crude imports, a significant amount for the world’s largest oil importer.
Beijing’s accelerated stockpiling has been a key factor supporting global oil prices under pressure from the rollback of OPEC+ production cuts. S&P Global Commodity Insights estimated that China has been adding about 530,000 barrels per day to its reserves in 2025, and traders expect the effort to continue through at least the first quarter of 2026, especially with crude prices dipping below $70 a barrel.
Analysts say the drive to expand reserves reflects both economic opportunity and heightened geopolitical concern. “China’s stockbuilding strategy has always been to ensure sufficient energy security for a nation deeply dependent on crude imports,” said June Goh, a Singapore-based analyst at Sparta Commodities, quoted by Reuters. “The agenda has become more urgent this year with heightened geopolitical risks surrounding Russia and Iran.”
London-based Energy Aspects said in July that Beijing had quietly issued mandates to state-owned firms to purchase 140 million barrels of crude for strategic reserves, with deliveries through March 2026. The effort follows similar policies adopted after 2022, when global energy flows were upended by sanctions on Moscow.
China’s oil stockpiles are split between long-standing Strategic Petroleum Reserve (SPR) sites and more flexible “commercial reserves” that are still considered part of national emergency storage. A law passed earlier this year formally integrated the two under a single national reserves framework, requiring state refiners to maintain government-supervised “social responsibility” stockpiles.
Both types of reserves are managed by divisions within the state oil firms under the supervision of the National Food and Strategic Reserves Administration, which holds title to the stored oil, according to industry sources cited by Reuters. In Shaanxi province, two new sites with a combined capacity of 11 million barrels have been classified as state reserves, while a 20-million-barrel Sinopec facility under construction on Hainan Island was described in local media as serving both commercial and national purposes.
China’s last public update on its strategic oil reserves came in 2017, when the National Bureau of Statistics reported nine storage bases totaling 238 million barrels. However, state-linked industry groups now say the country aims to expand capacity to more than 1 billion barrels, equivalent to about three months of net imports. Two trade sources told Reuters that the long-term goal may be even more ambitious — covering up to six months of imports, or roughly 2 billion barrels.
By comparison, the United States held 404 million barrels in its strategic petroleum reserve as of the end of August. While the U.S. is a major oil producer and net exporter, China remains heavily dependent on foreign supply, making stockpiling a critical component of its national energy strategy.
Consultancies Kpler and Vortexa estimate China’s total national and commercial crude inventories at between 735 million and 799 million barrels as of early September, up more than 100 million barrels from early 2023. Those figures exclude oil stored at four underground SPR sites that Reuters previously reported have a combined capacity of 110 million barrels.
Beijing’s accelerated buildup underscores its determination to shield the economy from external shocks while positioning itself as a stabilizing force in global energy markets. Analysts say the ongoing expansion will likely continue well into 2026, reinforcing China’s influence over international oil demand and pricing.
