Esso surrendered tankage capacity of 430 000 bbl to China Resources Company at the end of 1979, but has capacity to be able to carry stocks of about 500 000 bbl of fuel oil until the planned new tankage at CLP's new power station at Tap Shek Kok (for 700 000 bbl of fuel oil) is installed (at the end of 1981). This would mean that Esso would not be able to maintain a 30-day reserve until this new tankage becomes available,
44
Caltex say they could maintain a 30-day reserve of fuel oil but would require extra storage facilities for at least 100 000 bbl of gas oil. A new site would have to be made available to develop such facilities. Mobil would need additional tankage for both fuel oil and gas oil which they estimate would take at least 18 months to provide.
45
I
China Resources confirm that they would be able to meet a 30-day reserve requirement in respect of imports retailed through their own local outlets. (responsibility for the storage of the oil they import from China on behalf of the other oil companies to help meet the latters' overall local demand rests with those oil companies, and so China Resources would not be required to make provision for reserves of these imports.)
46
Peninsula and Gulf, i. e. Hong Kong Oil, say that they would have no difficulty in maintaining a 30-day reserve of fuel oil and gas oil.
(d) Government Monitoring
47
The present practice is that the oil companies submit to the Director of Oil Supplies monthly statements of their stocks of oil products. The Director notes these statements only rather than verifying and actively monitoring them (including the actual setting of supply targets) as he would be required to do if the proposal in paragraph 32 was implemented.
Financial Implications
48
The only financial implication to the Government of the proposal in paragraph 32 would be the additional commitment for monitoring mentioned in paragraph 47. The Director of Oil Supplies estimates that he will require additional staff for this purpose but is unable to say how many at this stage. It is not likely to be significant.
G.S. 166
CONFIDENTIAL
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