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Thursday, October 13, 2016

Three Steps the Government Reduces Gas Prices



In accordance with President Joko Widodo's orders, the Ministry of Energy and Mineral Resources continues to reduce gas prices to the US $ 5 per MMBtu. There are three ways to be done. Namely, the amendment to the contract of buying and selling gas on 31 contracts, making gas clusters based on the location of gas supply and buyers and imports.

Director-General of Oil and Gas at the ESDM Ministry IGN Wiratmaja Puja said the government was reviewing a number of contracts to reduce gas prices. In addition, Acting Minister of Energy and Mineral Resources Luhut Binsar Panjaitan said, his party would form zoning.

Luhut Binsar Panjaitan

Western Indonesia gets gas from western Indonesia, and eastern Indonesia gets gas from the east. If gas for eastern Indonesia is not enough, it can use imported gas. While gas from eastern Indonesia will be exported.

Luhut gave an example that the price of gas from Malaysia or Brunei or the Middle East could be cheaper, the US $ 3-US $ 4 per MMBtu and if regasification and distribution could be the US $ 8 per MMBtu for Medan. Cheaper than the price of gas in Medan reaching the US $ 13 per MMBtu. Well, finally after that, gas imports.


With regard to the three policies, ConocoPhillips Development and Relations VP Joang Laksanto emphasized that his party could not comment on the matter of the contract amendment.

Wianda Pusponegoro

"The contract must be agreed to by both parties. Wianda Pusponegoro VP Corporate Communication PT Pertamina said it understands the current gas prices. Now together seek comprehensive solutions from upstream to downstream, said Wianda Pusponegoro.

Gunung Sardjono, President Director of PT Pertamina Hulu Energi, criticized the cluster move. According to him, the government did cluster mapping based on demand and supply. If you match but the price hasn't been found, you can find a solution. The important thing is no one feels disadvantaged.

Kontan, Page-14, Thursday, Oct 13, 2016

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