H. Sterling Group is very actively working with Poly-GCL Petroleum Holding Group and Pan-Asia International Energy (Shandong) Co., Ltd. to invest in and develop a large-scale LNG terminal in Yantai, Shandong Province, China—a project that includes an LNG berth, regasification plant, and LNG tank farm with a 3 x 200,000 m3 storage capacity. After completion, this will be one of the largest LNG regas terminals in northern China.
Land reclamation and jetty construction, as the most significant stage of this project, is currently near completion. The entire project is expected to be operational by the start of 2022. After opening, its first phase will have an off- loading and re-gas capacity of 5 million MT LNG per year, and its second phase will increase to 10 million MT LNG one year later, when 2 more 200,000 m3 tanks are completed. It is our hope that this LNG terminal will be developed into a public platform open to all upstream suppliers and downstream end-users, so that they may purchase LNG at their own will to supply for their own demand.
H. Sterling Group is also coordinating with other investors in the region to construct a gas pipeline linking the Yantai LNG terminal with large gas end-users in the region. This gas pipeline, 540 kilometers in length and passing through a number of cities and large-scale gas power plants, will provide not only door-to-door piping service to downstream end-user industries and municipal gas networks, but also 8 billion cubic meters of gas per year to the local market to meet growing demand.