Taxation of liquefied natural gas

Definitions

LNG or liquefied natural gas is produced from natural gas that is cooled to the point that it condenses to a liquid (approximately -161°C). LNG is typically exported but is also used as a transport fuel, generally in heavy-duty long-range road transport.

Transport LNG is LNG that is supplied for use in a system for supplying fuel to an internal combustion engine of either a motor vehicle or vessel, either directly or by filling another tank connected to such an engine. It includes LNG delivered from a licensed excise site into the tanks of vehicle refuelling equipment at service stations or other sites that have LNG motor vehicle or vessel refuelling equipment.

Non-transport LNG is LNG that is supplied for use other than in an internal combustion engine of a motor vehicle or vessel. Non-transport LNG has other uses, including electricity generation.

Carbon charge is an amount equal to the price of carbon emissions from the use of liquid fuels or gaseous fuels. This charge varies for the different fuels depending on their carbon emissions. Carbon charge amounts will increase annually until 30 June 2015. They may then be adjusted every six months from 1 July 2015.