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Three Oil, Gas Facilities Located Close to Residences Halts Operations in China

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Published on : Aug 21, 2015

The three Chinese energy firms in China were informed by the local authorities to stop the operations after the hazardous blasts at the warehouse took place last week.

The Tianjin blasts that took place last week in China raised several public concerns about the facilities storing harmful materials close to homes and schools. The port warehouse at Tianjin had stored 700 tonnes of harmful chemcials including sodium cyanide from the nearest housing estate. This was closer in proximity than the measure allowed by the Chinese laws, added media. 

CNOOC Hangzhou Marketing Company was informed by the government of Hangzhou to cease and suspend all operations at the facility. It currently stores at least 3,000 tonnes of gasoline and diesel. 

The government said there are safety risks too. 

The facility was constructed in 1989 when there were no buildings close to the site. However, homes and shops and other primary school areas have been built recent over the years, it said. 

Several warehouses of harmful chemicals occupying an area of 500 sq mt, should be built away from the transportation facilities and other public buildings to at least 1,000 meters, as said in the regulations published by the National Safety Administration in 2001. 

Many housing sites have come closer to the ports and industrial parks in the last decade. This is due to the local governments focus on the higher taxes and rates which were sold off such land to the residential properties, added Head of Industrial at Jones Lang LaSalle.     
The southeastern Shenzhen city had the local housing bureaus which were asked to cease the operations by the end of this month. 

The firms fulfilled the government guidelines and decided to cease operations to draw lessons from the Tianjin incident. The gas storage facilities of both the companies are located 250 mtrs away from a large residential area.