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Shandong Province, in Northeast China, is the largest industrial province, and is also China’s largest energy consumer. Currently, Shandong’s main source of energy is coal, a non-renewable and high-polluting source of energy.  H. Sterling Group is working actively with Poly-GCL Petroleum (Yantai) Holdings Limited, Pan-Asia International Energy (Shandong) Co., Ltd. and Yantai Port Group Co., Ltd., and various global business partners to construct Yantai LNG, which will be the largest LNG receiving terminal in North China. At full capacity, it will be capable of receiving up to 5.9 million metric tons of LNG per year. With the government encouraging and pushing for more clean energy options, it is certain that Yantai LNG will be an important component in Shandong’s transition to clean energy.

Yantai LNG is located in an LNG-dedicated harbor at West Yantai Port, Shandong Province. Phase I of the project will cost 8.3 billion yuan and cover over 41 hectares. Phase I of the Yantai LNG terminal includes one LNG receiving berth accepting vessels up to 266,000 cubic meters in capacity, one transshipment berth accepting vessels up to 50,000 cubic meters in capacity, and five 200,000-cubic-meter LNG storage tanks. The terminal will also include regasification and distribution facilities on site.

 

Yantai LNG will receive 5.9 million tons of LNG per year in Phase I and regasify up to 40 million cubic meters of gas per day (1,400 million standard cubic feet per day). 500,000 tons of LNG per year will be transferred to small-scale LNG carriers for transshipment and another 500,000 tons will be delivered to end users via trucked LNG. Total receiving capacity will increase to 10 million tons per year in Phase II.

To date, the sea channel, breakwater, and land reclamation have been completed. It is our plan that this LNG terminal will be developed into a public utility open to all upstream suppliers and downstream end users.

LNG RECEIVING TERMINAL

PROJECT POTENTIAL

Yantai LNG is located in an LNG-dedicated harbor at West Yantai Port, Shandong Province. In the long term, Yantai LNG is approved to feature six LNG berths accepting vessels up to 266,000 cubic meters in capacity and twenty-two 200,000-cubic-meter LNG storage tanks. Land reclamation of the entire terminal has been completed.

Yantai LNG is currently the only LNG terminal in China featuring an LNG-dedicated harbor and waterway. The terminal also possesses ample land and harbor space for future developments, including cold energy utilization.

PROJECT SIGNIFICANCE

The Yantai LNG terminal will greatly increase natural gas supply and peak-shaving capacity in Shandong Province. Yantai LNG will complement existing and future provincial natural gas sources through both pipeline gas and trucked LNG, providing Shandong with a more diversified gas supply portfolio, increased energy security, and greater ability to meet evolving gas demand.

Yantai LNG will drive the energy transition in Shandong, serving industries, city gas networks, and LNG transportation networks in municipalities across the province. By replacing coal, gas supplied by Yantai LNG will reduce energy-related emissions, diversify Shandong’s energy mix, and maximize the international status and development potential of Shandong.

PROJECT OPPORTUNITIES

Shandong's oil and gas supplies are highly dependent on imports, with external dependence on crude oil as high as 69% and natural gas exceeding 90%. Considering the fast-growing demand, infrastructure for unloading, storage, and transportation of gas is far underdeveloped.

In 2020, Shandong will build two large-scale LNG receiving terminals, one of which is Yantai LNG, which will have a receiving capacity of more than 10 million metric tons per year. After the completion of additional phases by 2030, the receiving capacity of both terminals will surpass 50 million tons per year. In 2022, 9,000 kilometers of gas pipelines will be built; by 2030, this number will grow to over 10,000 kilometers. 

In 2020, Shandong's gas demand will be 25 billion cubic meters per year, accounting for 8% of the province's total energy consumption and reaching 85% of urban residents . By 2030, demand will reach 47 billion cubic meters per year, accounting for 13% of the province’s total energy consumption and serving 90% of urban residents.

LNG infrastructure development took place very late in Shandong, where its power producers, refineries, manufacturing industries and municipalities are almost an untamed market, providing huge potential for cooperation among upstream and downstream LNG businesses throughout the world. 

OUTLOOKS

By 2018, China has built 20 LNG receiving terminals, and the government plans to approve ten additional LNG terminals.

Yantai LNG, as a key project of Shandong Province and China as a whole, will have a LNG receiving capacity of 5 million tons per annum in its first phase in 2022.  In 2026 to 2027, the receiving capacity will increase to 10 million tons per annum, and in the long term it will reach 40 million tons per annum, making Yantai LNG the largest receiving terminal in northern China.

Within the coverage area of Yantai LNG and the pipeline, the total volume of confirmed off-taking agreements will be 21.5 billion cubic meters by 2022, and 29 billion cubic meters by 2030. Yantai LNG welcomes you to join us in building a cleaner energy future.

Guangzhou

Innovation Building, Suite 702 

555 Panyu Avenue North, Panyu District Guangzhou 511400, China

Beijing

Parkview Place, Suite 801

2 East 4th Ring Road North 

Chaoyang District, Beijing 100025, China

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Gateway East #14-03 

152 Beach Road, Singapore 189721

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