Oil & Gas
LNG Liquefaction Cost
Recording the cost of liquefying natural gas at the LNG train for export.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| LNG Processing Cost (LOE) | Expense (+) | 1,200,000.00 | - |
| Cash / Utilities / Contractor | Asset/Liability (-) | - | 1,200,000.00 |
💡 Accountant's Note
LNG liquefaction is an energy-intensive process. The cost is a direct production expense. LNG producers with tolling arrangements (where a third party liquefies the gas) record a tolling fee rather than the underlying costs.
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