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Obligation Transfer Numbers

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11 October 2017
CPM

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The Obligation Transfer Number Register was required under Section 45 of the Clean Energy Act 2011. Following the repeal of the carbon pricing mechanism we no longer publish this information on ​our website. ​

An Obligation Transfer Number (OTN) was used to transfer carbon price liability for the potential greenhouse gas emissions embodied (embodied emissions) in an amount of natural gas, liquefied petroleum gas (LPG) or liquefied natural gas (LNG) supplied from a gaseous fuel supplier to the recipient of that gas.

If you supplied natural gas to another person (the recipient) or if you imported, manufactured or produced LPG or LNG for non-transport purposes, you were liable for the potential greenhouse gas emissions embodied in the gas (the embodied emissions), except where liability was transferred from you to the recipient through quotation of an OTN.

An OTN was used to keep track of liability so that liability was not imposed twice on the same amount of natural gas, LPG or LNG. For example, it ensured that emissions from the use of natural gas, LPG or LNG that counted towards a large gas consuming facility's direct emissions liability or a large LPG or LNG consuming facility's emissions liability did not also count towards an OTN holder's embodied emissions liability in relation to that facility.

It was mandatory for the recipient of the natural gas, LPG or LNG supplied for use at a large gas consuming facility or an LPG or LNG consuming facility to quote an OTN and mandatory for suppliers of natural gas, LPG or LNG to accept the quotation. Note that the recipient of the natural gas, LPG or LNG was not necessarily the operator of the large natural gas/LPG/LNG consuming facility.

Entities were also permitted to quote an OTN when they used:

  • natural gas in the manufacture of CNG, LNG or LPG
  • natural gas wholly or partly as a feedstock
  • some or all of an amount of LPG or LNG as a feedstock,or
  • some or all of an amount of LPG or LNG in such a way as to not emit any greenhouse gases.
Prior to 1 July 2014, entities could also apply to be an approved person or approved recipient to quote an OTN on the basis that it was likely that covered emissions from the operation of an eligible facility of the applicant in an eligible financial year attributable to combustion of natural gas or LPG or LNG will be at least 25,000 tonnes CO2-e.

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