China Tackles Oil Spill After Pipelines Explode

An estimated 1,650 tons of oil have leaked into the Yellow Sea after two pipelines exploded at an oil storage depot.

The explosions and fire occurred when a pipe carrying oil from a tanker to a storage tank blew up, causing another nearby pipeline to explode. The storage depot belongs to China's National Petroleum Corporation, located near Dalian's Xiangang Harbor in Liauning Province.

The fires burned through most of the weekend and have since been contained, however small pockets continue to burn. Some 460 tons of oil has been collected and more than 500 vessels are responding to the 19 sq. mi. oil slick.

The VLCC COSMIC JEWEL chartered by PetroChina had stopped discharging crude at northeast China's Dalian port hours before the explosion occurred. There has been no injury or pollution or damage related to the vessel, the company said, adding that the vessel currently waits at a safe anchorage off Dalian awaiting instructions.

The vessel is still carrying 1 million barrels of Latin American crude, or half its original cargo; the vessel had discharged half of its load at Dalian port.

The Dalian Port was shutdown after the explosion, and 80-90 percent of the berths remain closed, including iron ore and grain cargoes. Officials estimate the clean-up costs in the ten of millions of dollars. Right now the question is, who owns the oil and is the oil insured? Those determined to own the oil will be at fault and responsible for the clean-up costs.