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Carbon Pollution Reduction Scheme Bill 2009 [No. 2]

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6028- Revised




The Parliament of the

Commonwealth of Australia






Carbon Pollution Reduction Scheme Bill 2009 [No. 2]



(1)     Page 207 (after line 18), after clause 167, insert:

167A  Application of EITE to liquefied natural gas production

             (1)  The emissions-intensive trade-exposed assistance program must determine that liquefied natural gas ( LNG ) production is a highly emissions-intensive trade-exposed activity.

             (2)  The activity definition of LNG production for the purposes of the emissions-intensive trade-exposed assistance program must apply to the entire LNG production process, including:

                     (a)  the production of the raw natural gas from an underground reservoir; and

                     (b)  the transformation of the natural gas, including but not limited to:

                              (i)  pre-treatment of the raw natural gas; and

                             (ii)  liquids (water and condensate) removal; and

                            (iii)  removal of acid gases (such as carbon dioxide and hydrogen sulphide); and

                            (iv)  dehydration and mercury removal; and

                             (v)  any flaring or venting of hydrocarbons and any fugitive emissions (for example from, but not limited to, compressor seals, valves and so on); and

                            (vi)  the liquefaction of the natural gas into LNG; and

                     (c)  the short-term buffer storage of LNG, where the volume of that buffer storage is designed specifically for the purpose of enabling efficient loading into the transportation system, such as ocean going tankers, at a frequency and rate determined by the facility’s off-take requirements; and

                     (d)  the loading of the LNG into a transportation system such as ocean going tankers; and

                     (e)  the supply of utilities such as, but not limited to, compressed air, nitrogen, steam and water where these are used in support of the activity; and

                      (f)  the regeneration of any catalysts or solvents used within the activity boundary; and

                     (g)  the provision of support operations such as, but not limited to, on-site office, warehousing, and accommodation and the supply boats and aviation services where these are used primarily to support the above activities and in the absence of government supplied support infrastructure.

             (3)  The emissions-intensive trade-exposed assistance program must provide for additional free Australian emissions units (a supplementary allocation ) to be issued in respect of LNG production projects at an effective rate of at least 80 per cent.

             (4)  For the purposes of this section, a supplementary allocation of free Australian emissions units is the number of free units required to be issued to a person in relation to a project to bring the aggregate number of free units issued in respect of that project in the previous year to a number equal to the specified percentage rate of assistance. 

 [EITE assistance for liquefied natural gas production]