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Dalian Free Trade Area Has Launched a New Mode of "Transferring to a Different Site for Inspection" for Liquefied Natural Gas (LNG)

Recently,the third cold wave in this winter has swept most parts of China. Affected bymany factors, such as domestic supply guarantee in winter, etc., the domesticnatural gas consumption demand has increased significantly. In order toeffectively guarantee the gas use demand of the residents and enterprises in NortheastChina, Dalian Free Trade Area, together with Beiliang Port Customs and underthe specific guidance of Dalian Customs, has launched a new mode of"transferring to a different sitefor inspection" to ensure with fulleffort the efficient and rapid customs clearance of the imported liquefiednatural gas (LNG) at Dalian port.

DalianLNG Receiving Station of the national pipe network, as the only liquefiednatural gas (LNG) receiving station in Northeast China andbeing a strategicproject of the state to revitalize the old industrial base ofNortheast Chinaand build an offshore oil and gas channel,supplies gas accounting for 42% ofthe natural gas consumption in the three provinces of Northeast China.According to the production task plan of Dalian LNG Receiving Station, it isexpected to receive and unload 380 million cubic meters of natural gas in Nov.and 827 million cubic meters of natural gas in Dec., which will reach thehighest value since it was put into operation, tomakea higher requirement for theport turnover of the receiving station, the utilization of the tank capacity,thetime efficiency for customs clearance supervision, etc.

Accordingto relevant regulations, oil and gas goods need to wait for inspection resultsin the port supervision area before being unloaded into the shore tanks or takendelivery from the dock.Being affected by the laboratory testing cycle, suchwaiting sometimes took about 2 days to be the biggest painful point forenhancingthe speed and efficiency and also the key point for the customs to cope with.

DalianFree Trade Area,being based on the enterprise needs and holding the philosophyof solving in priority the problems of enterprises being "urgent,difficult, longed for, worried", has united with BeiliangCustoms tolaunching by making repeated surveys and discussions, taking the “2-sectionaccession” reform as the cut-in point and combining with the practicalsituation of the enterprise production requirements and port supervision zone, anew mode of "transferring to a different site for inspection"for importedLNG,under which, the customs reviews according to enterprise application forimported LNG for those meeting relevant conditions to discharge vesselsfirstfor entry and take delivery to a site meeting relevant inspectionconditions outside the port supervision zone for inspection operations. It isallowed to sell or use in domestic market only if there is nothing abnormal inon-site inspection and sampling. This measure extends the port functionflexibly to realizeinstant docking, inspection and unloading for cargo ships afterarrival.

Sincethe customs launched the above-mentioned new mode, the waiting time beforeunloading has been reduced from 2-3 days to less than 3 hours, to greatlyimprove the berth utilization rate and tank capacity turnover speed, make theoperation organization of the LNG terminals more flexible and efficient.

Withthe in-depth implementation of the "carbon peak and carbonneutrality" policy, the growth of the natural gas market in NortheastChina is becoming more prominent. According to statistics, Beiliang PortCustoms supervised 30 vessel timesof imported LNG from Jan. to Oct., with atotal natural gas transport volume nearly 2.4 billion cubic meters. Next, DalianFree Trade Area will unite with the customs department to do a better job ofsupervision and service to Dalian LNG Receiving Station of the national pipenetwork, to give full play to its"bridgehead" role in natural gassupply guarantee forNortheast China, actively helpthe construction of a newdevelopment pattern, and guarantee  the people'slivelihood and economic developmentwith full effort.