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3. Importing Natural Gas

See Climate Change (Stationary Energy and Industrial Processes) Regulations 2009: 12–14

3.1   Overview

The formula for calculating emissions associated with importing natural gas accounts for downstream greenhouse gas emissions that will occur as a result of the natural gas being combusted.

These regulations allow greenhouse gas emissions from any imported natural gas which is subsequently re-exported to be explicitly deducted from your calculated emissions. Emissions associated with the mining, production, processing and transportation of the imported gas are not included.

3.2   Liquefied petroleum gas (LPG)

The regulations require LPG importers to collect data and report on the total tonnes imported of three classes of LPG-related product: propane, butane, and LPG with a propane content of 60 per cent by volume. Emissions factors for each class are listed in Table 4 of Schedule 2 of the regulations. For LPG mixes other than 60 per cent propane, the regulations provide an alternative calculation method based on the volume fraction of propane in the mix. This is described at Section 6 of this guide.

3.3   Liquefied natural gas

Although the only natural gas products currently imported into New Zealand are LPG and its constituents, the regulations provide for possible future imports of liquefied natural gas (LNG). Imports of LNG must be reported in energy terms. An optional storage adjustment is provided to allow for the possibility that natural gas imported as LNG is injected into or extracted from a storage facility during the year.

3.4   Information you are required to collect

The following information must be collected for each class of natural gas imported in the year:

Information to collect How to collect
  • number of tonnes of each class of LPG imported
  • as recorded at the customs point
  • may be obtained from shipping documentation
  • number of tonnes of each class of LPG exported
  • as recorded at the customs point
  • number of terajoules of LNG imported
  • as recorded at the customs point
  • may be obtained from shipping documentation
  • number of terajoules of LNG exported
  • as recorded at the customs point

If including a storage adjustment for LNG:

Information to collect How to collect
  • terajoules injected into the facility
  • between 1 January and 31 December in the year
  • terajoules extracted from the facility
  • between 1 January and 31 December in the year

3.5   Example calculation

Bunsen Burner Ltd imports 15,000 tonnes of propane and 10,000 tonnes of butane in a year. They mix the two at a 60:40 volume ratio in New Zealand to produce LPG for sale, and export 5000 tonnes of this LPG. The remaining 20,000 tonnes of LPG is sold in New Zealand. In addition, the firm imports 5000 tonnes of a different LPG mix, containing 50 per cent propane. The emissions factor for this mix is determined to be 3.007 tCO2 per tonne using the method given later in this guide. The firm does not import any LNG.

The participant applies the calculation above to each of the four relevant classes:

Class of natural gas Gas imported Gas exported Emissions factor
(tCO2-e/t)		 Storage adjustment Emissions
(tCO2-e)
Term used in regulations A B EF S E
Propane 15,000 t 0 2.988   44,820
Butane 10,000 t 0 3.024   30,240
LPG (60:40) 0 5000 t 3.003   –15,015
LPG (50:50) 5000 t 0 3.007   15,035
Total         75,080

Propane imported (none re-exported):
E = (15,000 – 0) × 2.988 = 44,820 tCO2-e

Butane imported (none re-exported):
E = (10,000 – 0) × 3.024 = 30,240 tCO2-e

60:40 LPG exported (none imported):
E = (0 – 5000) × 3.003 = – 15,015 tCO2-e

50:50 LPG imported (none exported):
E = (5000 – 0) × 3.007 = 15,035 tCO2-e

The total emissions to be reported for the activity of importing natural gas are:

TE = ΣE = 44,820 + 30,240 – 15,015 + 15,035 = 75,080 tCO2-e


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