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  • Writer's pictureH. Sterling Group

Yantai LNG Terminal Final EPC Contract Awarded

Yantai LNG terminal project owner Shandong Poly-GCL Pan-Asia International Energy Co., Ltd. (“Yantai LNG”) has awarded both China Tianchen—a subsidiary of China National Chemical Engineering Co., Ltd.—and Harbin Electric Group the EPC contract for the development of the Yantai LNG terminal in Shandong Province, China.


H. Sterling Group Pte. Ltd., as a Yantai LNG partner, attended the signing ceremony with GCL Natural Gas Group and the Yantai Development Zone Management Committee. Construction of the Yantai LNG terminal has now been fast-tracked for completion, achieving a key milestone in the project’s development.


The Yantai LNG terminal was approved by the National Development and Reform Commission of China on January 9, 2020. With strong support from industry leaders and government at all levels, Yantai LNG overcame numerous obstacles caused by the Covid-19 pandemic to start construction in April and finish EPC tendering by October 19. China Tianchen and Harbin Electric Group faced fierce competition to win this project.

China Tianchen (China Tianchen Engineering Co., Ltd.) has a successful engineering track record in 30 countries around the world, providing engineering design services across 21 different industries, including petroleum, chemicals, and natural gas. China Tianchen boasts LNG infrastructure construction experience with its previous involvement in the Zhuhai LNG receiving terminal.


Harbin Electric Group Co., Ltd. is an EPC contractor engaged in the research and development, manufacturing and construction of power plant equipment. Harbin Electric was a top-100 international engineering contractor in 2019, as ranked by Engineering News-Record. Harbin Electric, with a wealth of energy infrastructure experience in China and around the world, officially entered the oil and gas industry with its Yantai LNG partnership.


At the ceremony, Tianchen Chairman Yang Xuemin emphasized Tianchen’s commitment to “building a project, forging relationships, and constructing a monument,” and Harbin Electric International Co., Ltd. (subsidiary of the group company) Chairman Guo Yu expressed eagerness to promote cross-industry, diversified development.


About Yantai LNG

Yantai LNG (Shandong Poly-GCL Pan-Asia International Energy Co., Ltd.) is a joint venture established by Poly-GCL Petroleum Group Holdings Ltd., Shandong Pan-Asia International Energy Distribution Center Co., Ltd., and Yantai Port Group Co., Ltd. Yantai LNG is the developer and sole owner of the Yantai LNG terminal.


About the Yantai LNG Terminal

The Yantai LNG terminal is located in West Yantai Port, Shandong Province, China. Phase I of the Yantai LNG terminal was approved in January 2020 to receive 5.9 million metric tons per year of LNG (mtpa) and will commence operations in 2023. The terminal boasts an LNG-dedicated harbor and waterway. Phase II capacity will reach 10 mtpa by 2025, and the terminal is directed by government policy to eventually expand to 40 mtpa. A 530-kilometer, 48-inch pipeline originating at the Yantai LNG terminal will deliver gas to industry, power, and city gas networks across Shandong Province, serving a population of 50 million.


The Yantai LNG terminal boasts the largest LNG storage capacity in China to date, with over 1 million cubic meters of storage to be built in Phase I alone. Significant added LNG storage and supply capacity will transform the demand and supply profiles of natural gas in the province, allowing for more flexible distribution and peak shaving. The Yantai LNG terminal will be developed into an open platform available to all upstream suppliers and downstream end users, providing door-to-door energy distribution services and driving the energy transition in Shandong.


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