H. Sterling Energy Pte. Ltd. is designated by Poly-GCL Pan-Asia International Energy (Shandong) Co., Ltd. as the sole LNG trader and supplier for its Yantai LNG project. To carry out this agreement, H. Sterling Energy is engaging extensively with large international gas suppliers from the Middle East and Europe for potential long-term cooperation.
In order to ensure that 3 million MT of LNG can be delivered at the Yantai LNG terminal by the beginning of 2022, H. Sterling Energy has formed a joint venture partnership with CCCC Zhoushan Energy & Chemicals Co., Ltd. To date, H. Sterling Energy has assisted Poly-GCL Pan-Asia International Energy Co., Ltd. in signing several Heads of Agreement with large international gas suppliers, such as GCL, ENOC, UNIPER, OTI, NEW AGE, and others. The first SPA is expected to be signed in the first quarter of 2019.
To manage increasing logistical demands, H. Sterling Energy is currently partnering with China-Singapore National Energy Co., Ltd. (CSNE) to establish Oriental Gas Shipping Pte. Ltd. (Oriental Gas), an SPV designed to coordinate with a large shipbuilding company to charter two LNG vessels, which are under construction in order to meet downstream LNG demand on DES terms. To execute this mission, H. Sterling Energy is now exploring possibilities with a few internationally recognized LNG suppliers for a long-term joint shipping operation, which will ensure the delivery of LNG after 2022 to the Yantai LNG terminal. This agreement will be made in a timely and quantitative manner.
Meanwhile, H. Sterling Energy has also signed cooperative agreements with large-scale downstream petrochemical industries for a long-term, sustainable supply of LPG, which we expect to source from the world market to supply industries and municipal gas companies at a rate of one million MT per year.