China’s Yantai LNG Group is to operate an LNG import terminal by 2022.
According to newswire reports, the company expects Chinese government approval in the next few weeks.
Yantai is located in Shandong province, which is an industrial and petrochemical hub in eastern China. It has 25% of China’s steel capacity and is a big coal-consuming region, but does not have a gas-fired power plant.
Yantai LNG is reportedly building the terminal in two phases - the first phase with a capacity of 5 mill tonnes per year and the second of 6.5 mill tonnes per year capacity. Land reclamation for the project has already started, a source told Reuters.
Phase 1 will cost $1.1 bill and comprise an LNG-dedicated port area, a berth that can receive up to Q-Max LNGCs, a 50,000 cu m transhipment berth, and five 200,000 cu m storage tanks, another source said.
Phase 2, to be completed by 2025, will have two Q-Max capacity LNGC berths and five more 200,000 cu m storage tanks, expanding Yantai LNG’s receiving capacity to 11.5 mill tonnes per year.
Project holders are in talks with several suppliers to import LNG through long-term contracts, Eric Wang, executive director at major shareholder Poly-GCL Pan Asia International Energy told Reuters on the sidelines of an industry conference.
The partners may also consider investing in liquefaction projects to source gas for the terminal, Wang said, adding that his company has scheduled a visit to Houston later this month or in early November to meet with US producers.