The application was approved by the State Council, according to the National Development and Reform Commission.

The center will stock, divert and release oil reserves in an effort to help the country deal with emergencies and increase energy security, China Daily reported. The new group will also build reserve bases and monitor domestic and global oil supply and demand.

Energy consumption had been rapidly increasing as the country's economy expands. More stable and sufficient energy supplies will be required in the coming years.

Currently four reserve bases have been built or are under construction in Zhenhai, Zhoushan, Dalian and Huangdao. Wanzhou in Chongqing Municipality just submitted a fifth application to the government to become another reserve base.

China hopes to ultimately have more than 100 million barrels in store by the end of the decade, the equivalent of 90-day net oil imports.