A partnership agreement was signed on 25th May between H. Sterling Group with its subsidiary Poly GCL Oil & Gas Holdings Ltd and Zhongsen Joint Holdings Ltd , a Macao-based company for joining forces working for Yantai LNG.
Under the agreement, Zhongsen Joint Holdings and its business partner, New Pearl Group, which is China's largest building ceramics manufacturer, will be responsible for the gas off-taking and distribution; whereas H. Sterling Group and its subsidiary Poly GCL Oil & Gas will handle the sourcing and contracting of LNG for its share capacity.
H. Sterling Group now holds a 21% equity stake in Yantai LNG, which is one of the largest LNG terminal located in the northern part of China. The project boasts a total capacity of 5.9 million tonnes per annum (mtpa) and is currently under construction. As of now, the project has reached a completion rate of 54%. It is expected that the project will be finished and become operational by the end of 2024.
This partnership brings together the expertise and resources of both companies. By combining our strengths, we aim to ensure a secured gas off-taking capability in the region and beyond.
The Yantai LNG project holds great potential for the region, as it will contribute to meeting the growing energy demands in northern China. LNG is a cleaner source of energy compared to traditional fossil fuels, and its availability will help reduce emissions and promote sustainable development for the local communities.