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Mega gas project settles in Yantai

Updated : 2017-08-18

(chinadaily.com.cn)

The city of Yantai in East China's Shandong province is set to become one of China's largest energy storage and transportation bases, as plans were announced to build a liquefied natural gas (LNG) terminal worth 10 billion yuan ($1.5 billion) in the city on Aug 14.

The LNG terminal, which will be constructed in the western area of Yantai Port, will be a joint project by POLY-GCL Petroleum Group Holdings, Yantai Port Group and Shandong Pan-Asia International Energy Distribution Center.

According to an agreement signed by the three companies, the partners will set up a joint venture to build the project.

The terminal will provide services including gas processing, transportation and sales, and is expected to be put into operation in 2020. Once it comes online, the terminal will be capable of processing an estimated 3 million tons of gas per year.

Yantai is strategically located where the waters of the Bohai Gulf meet the Yellow Sea, making it the ideal place for a gas facility, according to Barton Yu, chairman and president of POLY-GCL Petroleum Group Holdings.

The oil and gas company investigated potential sites for the project in the Bohai Gulf, Yangtze River Delta region and Pearl River Delta region before deciding to build the project in Yantai Port.

As Yantai is an important strategic link along China's Belt and Road Initiative, the LNG terminal will help match domestic investors with projects from countries and regions involved in the initiative.

The coastal city will also take advantage of the opportunity to build the western part of Yantai Port into a key LNG supply and distribution center.

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