LNG Trade

Shandong is the most important petrochemical hub in China. With over 40 large-scale crude oil refineries, and a total refining capacity of 210 million metric tons per year, Shandong is the third largest refinery hotspot in the world. Shandong is also the home of the world’s largest copper and aluminum refineries, one-fourth of China’s iron and steel production, and many of China’s largest glass and car components manufacturers.

​

In 2018, total power production in Shandong was 560 billion kWh, 96% of which was produced by coal. Over 200 million metric tons of coal were burned in 2018, and Shandong still does not have a single gas power plant yet.

​

The Shandong government has required that fast overhaul of the current energy structure and vigorous reduction of coal use must be implemented. To reduce coal consumption, Shandong is planning to increase gas consumption to about 25 billion cubic meters in 2020 and 53 billion cubic meters by 2030. This provides huge potential for cooperation among the world’s upstream LNG suppliers and downstream end users in the region.

​

As the main driver behind Yantai LNG, H. Sterling Group is helping to drive Shandong’s energy transition by sourcing LNG at competitive prices. H. Sterling has been working with a number of international upstream companies in order to supply the terminal with competitive LNG.