The Nansha depot will have a storage capacity of 560,000 cubic metres, making it the largest of its kind in the Pearl River delta, a major growth area of China's economy.
The facility will be built in two phases with the first phase going into operation in 2004 with a storage capacity of 363,000 cubic metres and a cost of 1 billion yuan (about $US120 million). The second phase will have a storage capacity of 200,000 cubic metres.
Guangzhou also plans to build an oil berth with an annual handling capacity of 8 million tons, as a subsidiary project.
BP will take a 40% stake in the venture with the Guangzhou company controlling the remaining 60% of the total shares.
The Pearl River delta consumes 70% of the total 18 million tons of oil used by Guangdong Province annually and the figure is expected to continue rising.
