Oil imports were still blocked at the major Chinese port of Dalian following a fire and oil slick, while authorities recruited an additional 500 fishing boats to help with the clean-up

Refinery operations have been disrupted and cargoes diverted since a pipeline explosion and fire hit the Xingang port, home to a 19 million barrel strategic petroleum reserve, during a tanker offloading last Friday, spilling 1,500 tonnes of crude into the sea to leave a slick covering 183 sq km (71 sq miles).

Port operator Dalian Port said in a statement that except for the crude oil terminal, all terminals at Xingang and the adjacent Dayaowan area had resumed operations.

"While ground operations at the group's crude oil terminal have been resumed, the group will take active measures to resume the vessel loading and unloading operations in the near future," the statement said.

"The handling and storage capacity of the group for refined oil and liquefied chemicals has not been affected by the accident, while part of its handling and storage operations for crude oil has been temporarily affected."

State news agency Xinhua said that container operations had returned to normal, and shipping lanes were open after temporary restrictions following the accident were lifted.

The reduced flow of oil has forced southern China refineries to reduce operations, and at least three at least three China National Petroleum Corp (CNPC) subsidiaries have cut sales of refined oil in southern provinces, Xinhua reported.

It quoted Chu Jiewang, an analyst at Shanghai-based C1 Energy Co. Ltd., as saying north-to-south oil shipments from Dalian port, usually 30,000-50,000 tons per day (220,000-365,000 barrels per day), have been affected.

Clean-Up Efforts
About 24 specialist clean-up vessels, together with a total of 800 fishing boats, were using dispersants, absorbents and oil-eating bacteria to clear up the slick.

Although nobody was hurt in the initial fire, a firefighter died on Tuesday after falling into the sea with a colleague, who was rescued.

With nearly a third of the oil now collected, it will take at least another four to five days to complete operations, the news agency quoted Luan Yuxuan, deputy director of Dalian's Oceanic and Fishery Administration, as saying.

Dalian is a transfer spot for two major refineries, Dalian Petrochemical Corp and WEPEC, both operated by PetroChina, with a combined processing capacity of 600,000 barrels per day (bpd).

PetroChina has set up a contingency plan to cope with one week's closure of the main oil port, which receives crude shipments regularly and is also an export hub for gasoline and diesel.

Six Very Large Crude Carriers (VLCCs), with about 12 million barrels of oil, are set to be diverted, and corn deliveries have also been forced to dock elsewhere.

PetroChina has diverted one VLCC to South Korea and the others could be forced to re-route there or to any one of another half-dozen VLCC terminals in China.

The aftermath of the weekend fire could stoke pressure for stricter environmental standards in China, already reeling from a toxic copper mine leak in the south that led to headlines last week amid accusations of a cover-up. (Reuters)