China will begin to select locations for its third phase of the strategic oil reserve project, an official said, the National Business Daily reported Wednesday.

Kou Zhong, deputy director of the Overseas Pipe Institute at the China Petroleum Planning and Engineering Institute, said potential locations include Wanzhou district of Chongqing, Hainan province and Caofeidian of Heibei province.

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Kou said China's strategic oil reserves will hit 85 million tons by 2020, equivalent to 90 days' crude oil import volume, which is also the standard set by the International Energy Agency.

China started the planning of the national oil stockpile bases in 2004, and the four bases of the first phase are in Zhoushan and Zhenhai in Zhejiang province, Dalian in Liaoning province and Huangdao in Shandong province.

The second phase of the project includes eight bases and is expected to complete construction in 2012, according to Kou.