Shandong Yantai LNG project starts

In April 2020, the Yantai LNG terminal and receiving terminal project (hereinafter referred to as "Yantai LNG Project") invested and constructed by Shandong Poly GCL-Huala International Energy Co., Ltd. was officially approved by the National Development and Reform Commission and started construction.

Project Overview

The Yantai LNG project is located in the liquid chemical operation area of Xigang District, Yantai City, Shandong Province. The first phase of the project plans to invest 8.2 billion yuan (about 1.18 billion US dollars), and plans to build a 266,000 cubic meter LNG dock and a 50,000 terminal Cubic meters of water transfer berths, five 200,000 cubic meters of LNG full-capacity storage tanks and supporting gasification facilities, as well as dedicated port pools, channels and anchorages for LNG ships.

The annual LNG handling capacity of the project exceeds 5 million tons, and the maximum gasification capacity reaches more than 40 million cubic meters per day. The first phase is planned to be completed and put into operation in 2022. The second phase plans to build two more berths of 266,000 cubic meters and five storage tanks of 200,000 cubic meters. After the completion of the second phase of the project, the total LNG handling capacity will reach more than 10 million tons per year.

The supporting natural gas long-distance pipeline project is planned to be constructed and put into operation simultaneously with the Yantai LNG project. The main pipeline starts at the LNG terminal in the west port area of Yantai and ends at Qihe Station, which is connected to the national natural gas pipeline network. The total length is about 530 kilometers. The design pipe diameter is 1,219 mm. The annual gas transmission capacity is 23 billion cubic meters. 100 million yuan (about 1.23 billion US dollars).

In the future, according to market development, pipelines can be constructed along the same route to meet the growing demand for natural gas along the hinterland.

Significant

Shandong is a major petrochemical province. With the economic development, natural gas consumption has grown rapidly, with an average annual growth rate of 19%. According to forecasts, the province ’s natural gas demand will reach 53 billion cubic meters in 2030. As China's large-scale petroleum refining, ore processing and smelting, power generation, manufacturing and other industrial bases, Shandong Province has great potential for future industrial and livelihood gas demand.

At present, the province's natural gas consumption is far lower than other provinces on the eastern coast. The main reason is that the province's LNG loading, unloading, gasification, and storage and transportation facilities are not large enough to meet economic development and people's livelihood needs.

As a key project in China and Shandong Province, the Yantai LNG project will benefit 6 cities and industrial clusters in Shandong Province, with a population of more than 40 million. Upon completion, it will greatly enhance the natural gas supply and storage capacity in Shandong, and promote the transformation of local energy structure. Prevent air pollution, improve the ecological environment, and further promote the development of the local economy.