Daxie Development Zone is home to a large number of petrochemical enterprises in Ningbo, East China's Zhejiang province. [Photo/cnnb.com.cn]

An oil depot funded by a subsidiary of China National Offshore Oil Corporation (CNOOC) broke ground in the Daxie Development Zone in Ningbo on Sept 24. 

With an investment of nearly 200 million yuan ($28.98 million), the facility will consist of nine storage tanks for refined oil products including jet fuel, gasoline, diesel fuel and ethanol, with a total capacity of 118,500 cubic meters.

A head official of the administrative committee of Daxie Development Zone said the project comes as part of efforts by local authorities to boost the development of the local petrochemical industry and adhere to policies concerning the Ningbo area, an extended part of the China (Zhejiang) Pilot Free Trade Zone. 

The Ningbo area, occupying an area of 46 square meters, was officially inaugurated on the same day. It is designed to become an international shipping hub, oil and gas resource distribution center with international influence, innovation center for international supply chains, global scientific innovation center for new materials, and demonstration zone for intelligent manufacturing.

According to a person in charge at CNOOC, the commencement of the project marks a large step forward for the company in building a pivotal energy trade and storage base in the Yangtze River Delta region.

Construction on the depot is scheduled to last for 14 months and will be completed in early 2022.