Business news for Sun, 30 Dec 2007 & with word shanghai. 2 news.

SHANGHAI'S first emergency fuel storage facility will cost 520 million yuan (US$71.2 million) to build, nearly double the original budget, the Shanghai Chemical Industry Park said at the weekend. A foundation-laying ceremony was held on Saturday at the chemical park, about 50 kilometers southwest of the city proper. Construction will start soon and the facility will be operational by early 2009. The project, to be built by the Bailian Group, will include 18 oil tanks with a combined storage capacity of 200,000 cubic meters. Some 30,000 tons of refined oil products, mainly diesel, will be stored, the equivalent of five to seven days of Shanghai's needs, ready to be used in the event of any disruption of supplies. Shanghai's daily diesel consumption is estimated at 6,700 tons this season, according to Sinopec. A diesel shortage hit the nation in October and November after crude oil prices surged, forcing state oil companies Sinopec and PetroChina to refine more fuel and arrange

THE Shanghai Futures Exchange, one of China's major futures trading venues, will start gold futures trading on January 9, the exchange said yesterday. But the contract size will be larger than originally expected in order to discourage individual investors. The contract size will be set at 1,000 grams. In an inquiry that the SFE distributed earlier this month, the contract size was listed at 300 gm. An official with the Exchange said the contract size was decided based on surveys. It is large enough to discourage those individual investors who lacked the ability to take risks, while also being useful to institutions. "We started gold futures trading to provide channels for gold producers and individual investors to hedge against price fluctuations," said the official. The China Securities Regulatory Commission said in a statement on Friday that it had approved the gold futures. The launch of gold futures would add to the hedging options for gold producers