LNG INFRASTRUCTURE
YANTAI LNG RECEIVING TERMINAL
H. Sterling Group, as a holding company of Poly-GCL Petroleum (Yantai) Limited, is working actively with China Urban-Rural Energy Co. Ltd and Pan-Asia International Energy (Shandong) Co., Ltd. investing and developing a large-scale LNG receiving terminal located in West Yantai Port, Shandong Province, China. Phase I of the project includes one berth with a vessel capacity of 266,000 m3, one transshipment berth with a vessel capacity of 50,000 m3, five 200,000 m3 storage tanks, and an independent waterway and anchorage site. Receiving capacity in Phase I will reach 5.9 million metric tons of LNG per annum, and regasification capacity will reach 40 million m3 of gas per day. Phase I of the project will start operation by the end of 2024.
Phase II of the project includes one additional berth with a vessel capacity at 266,000 m3, and another two 200,000 m3 storage tanks. Construction will take place from 2025 to 2027. Receiving capacity will exceed 10 million tons per annum. According to plans approved by the government, Yantai LNG terminal will expand to a capacity of 40 million tons per annum, making it the largest LNG terminal in northern China.
To date, land reclamation, sea channel, breakwater, LNG tanks have been completed, berth, jetty and off-loading equipment are under construction. It is planned that this LNG terminal is to be developed into a public utility open to all upstream suppliers and downstream end users.
Yantai Natural Gas Pipeline
H. Sterling Group is also working with investors in the region to construct a gas pipeline linking the Yantai LNG terminal with large gas end users in the region. Yantai Gas Pipeline project will encompass over 50 million people across six cities and industrial hubs in Shandong, the biggest industrial province in northern China.
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.
Yantai gas pipeline is 540 kilometers in length, 1219 mm (48 inches) in diameter, and operate at a pressure of 10 MPa, delivering over 23 billion cubic meters of gas per year directly to gas power plants, manufacturing industries, petrochemical plants, municipal gas networks and various other users in the region, helping the region to achieve its energy transition from coal to gas.
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 to 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 was burned in 2018, and Shandong still does not have a single gas power plant yet.
Energy Trade - LNG
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.