The vessel Asian Excellence transfers liquefied natural gas into a bonded tank. [Photo/zhoushan.cn]

Zhoushan in East China's Zhejiang province marked a new milestone as the first bonded liquefied natural gas (LNG) storage facility entered service in the China (Zhejiang) Pilot Free Trade Zone on May 25.

The milestone was highlighted by the docking of the LNG vessel Asian Excellence, a tank ship designed for transporting LNG, at the Zhoushan LNG terminal, where 67,000 metric tons of LNG were transferred into a newly constructed 160,000-cubic-meter bonded tank.

The LNG stored in this tank has cleared customs but has not yet been taxed, qualifying it as bonded LNG. This type of LNG can either be re-exported or enter the domestic market upon tax declaration and payment.

The facility allows international LNG vessels to refuel directly from Zhoushan, reducing operational costs and improving refueling efficiency. This bonded warehouse will attract more companies to engage in diversified LNG operations in Zhoushan.

This was also the first bonded LNG warehousing operation processed by Zhoushan Customs. To improve ship supervision and cargo clearance, authorities implemented real-time tracking and flexible inspection policies, such as appointment-based checks and on-demand inspections. Customs officials have supported the project from its inception, providing early guidance on facility setup and bonded declarations.

As more international vessels turn to LNG as a cleaner alternative to traditional fuels, this bonded storage facility will strengthen Zhoushan's position as a global hub for bonded marine fuel supply and will support the China (Zhejiang) Pilot Free Trade Zone's role in bulk commodity logistics.