PetroChina adds 9.5 mln bbls fuel storage in 9 mths

BEIJING, Oct 19 (Reuters) - PetroChina (0857.HK)(601857.SS) has added 1.5 million cubic metres, or about 9.5 million barrels, of refined oil storage tanks in the first three quarters of this year, the China Petroleum Daily reported on Monday.

The second-largest refiner in China also completed early-stage works for 24 fuel storing projects during the same period, according to the report in the newspaper, which is run by CNPC, PetroChina's parent.

The report did not say where the added capacity was or how much storage capacity PetroChina has.

Chinese oil firms have been expanding their crude and fuel stockpiling capacity in recent years to improve their ability to meet rising demand and government requirements.

The report said PetroChina's market share in the domestic fuel market rose to 43.2 percent in the first three quarters, and institutional customers increased 80.1 percent.

Rival Sinopec (0386.HK)(600028.SS), the top refiner in Asia, is the largest fuel supplier in China.

PetroChina developed more than 400 service stations, adding more than 1.5 million tonnes fuel retailing capacity from January to September.

"Fuel sales enter its slow season in the fourth quarter, and fuel supplies will continue to overwhelm demand, leading to a tough situation in terms of competition," the newspaper report said.

Separately, PetroChina has started building 150,000 cubic metres fuel storage tanks in Yunnan, its largest in the southwestern province, as a supporting facility for its future Kunming refinery and China-Myanmar oil and gas pipelines, according to a report by the semi-official China News Service.

CNPC reportedly planned to start building the pipelines from September that would enable it to import crude oil more quickly from the Middle East and Africa and sell Myanmar gas into the Chinese market.

But Myanmar activists called for China to halt construction of the controversial pipelines, warning of instability and civil unrest if Myanmar's ruling junta continue to starve its people of energy.

(Reporting by Jim Bai and Chen Aizhu, Editing by Jacqueline Wong)