Taxation of compressed natural gas

Definitions

Compressed natural gas (CNG) is produced when natural gas is compressed, usually to between 200 and 250 bar, and stored in high pressure cylinders. CNG is used to fuel some bus fleets, street sweepers and garbage collection vehicles.

Transport CNG is CNG that is compressed for use as a fuel in a motor vehicle, excluding CNG that is compressed:

• at a residential premises using equipment capable of compression at a rate not more than 10 kilograms of natural gas per hour and not for further sale
• for use in forklifts mainly off-road.

Non-transport CNG is CNG that is compressed for use other than as a fuel in a motor vehicle, but also includes CNG that is compressed:

• at a residential premises using equipment capable of compression at a rate not more than 10 kilograms of natural gas per hour and not for further sale
• for use in forklifts mainly off-road.