Gas for Domestic Or Foreign?
By Thonthowi Djauhari | Newsroom Blog -
Complaints about the domestic industry reduced supply of gas is still prominent.Instead they, who are members of the User Gas Industry Forum, had asked for assurance of supply is directly to the Vice President Boediono.
Approximately 10 industry associations that joined in the forum, among others, Rubber Gloves Industry Association, the Indonesian Textile Association, the Association of Ceramic Industry Aneka Indonesia, and Sheet Glass and Safety Association, said only get 800 cubic feet of gas per day. Yet their need of 1,500 cubic feet per day.
Therefore, the domestic industry urges a reduction in natural gas exports, and hope that the government is more concerned with domestic gas needs. They feel the weight if the gas needs to be replaced fuel oil.
Law No. 22/2001 on Oil and Gas was only requires manufacturers to provide 25 percent of gas production for domestic needs. It departs from the assumption, not a lot of domestic demand. Then the remainder should be exported.
Insistence that continues to do a lot of circles to make the government and the parliament held a joint meeting last week. Meeting this thorough-tangung, because it combines a number of Commission IV of the parliamentary commission in charge of agriculture, the Commission V (energy), Commission VI (industry, trade, and SOE) and the Commission VII (reign in the country).
Meanwhile, the executive attended the Coordinating Minister Hatta Rajasa, Trade Minister Mari Elka Pangestu, Minister Darwin Zahedy Saleh, Minister of Industry, MSHidayat, and State Enterprises Minister Mustafa Abubakar.
The result, they agreed to revise the oil and gas law. There is agreement that the obligation to meet domestic supply by 25 percent no longer appropriate. This revision is also in accordance with the mandate of the Special Committee on Fuel DPR period 2004-2009.
Parliament's Joint Committee also urged the government to create an action plan or policy measures for priority projects such as natural gas field Donggi Senoro, Masela and the Natuna D-Alpha.
Council also urged the renegotiation of gas sales contracts abroad. Accelerated production of new gas fields, as well as the development of unconventional gas as coal bed methane or coal gas methane (the gases present in coal deposits).
Gas fields in Indonesia are often located deep in the sea, on a desert island, or even in the middle of the woods. The remoteness of the consumer requires an adequate infrastructure to be utilized. Therefore, the government asked to make an action plan to immediately build infrastructure, particularly transmission and distribution pipelines of natural gas and liquefied natural gas terminal (LNG receiving terminal), as well as compressed natural gas (compressed natural gas).
Well, one of the most important thing again is a matter of reduction agreement and the difference in price of domestic gas price in the market. Government asked to make policy on domestic gas prices are not too low from the market, so that supplies can be more smoothly.
On price, the Executive Agency for Upstream Oil and Gas (BP Migas) has indeed asked PT State Gas Company, as the company's gas distributor, to fix the purchase price is not economical. Economy is viewed from the side of the natural gas industry.
PGN is still buying gas from Tangguh Block in Papua and Grissik Block, South Sumatra under $ 3 (approximately USD 24 thousand) per MMBTU (million metric British units). No wonder the head of BP Migas Priyono compare this price with the sale of gas from the Natuna Block B to Malaysia which was above $ 5 per MMBTU.
According to him, sales of domestic gas prices should be the smallest $ 5 per MMBTU. Perhaps because of that, the gas is still more widely exported abroad because the price could reach no less than $ 12 per MMBTU.
Vice President Boediono when opening the Convention and Exhibition Indonesian Petroleum Association, 34th May, also admitted this. "So there should be a review of pricing policies in the country," he said. Gradually, gas prices will be adjusted to economical.
The assumption, PGN have to pay more. But by buying an economical price, the supply to PGN will go more smoothly with larger volumes. It's just that still a question: whether the domestic industry is pleased with the purchase price is more expensive?
Seems like they would need to secure supply and price. Forum Secretary General Industrial Gas Users Achmad Widjaja never asked for clarification of national economical price for gas, because the government has not been set.
"Do not set a price of $ 6.5 per MMBTU as long as we pay, or above the international price of $ 8 per MMBTU," he said. Dark of the gas distribution is also questioned by them. Distribution is not transparent trigger suspicion that there are industries that receive excess supply, and vice versa.
Let us wait whether the results of a joint meeting could be applied or not
By Thonthowi Djauhari | Newsroom Blog -
Complaints about the domestic industry reduced supply of gas is still prominent.Instead they, who are members of the User Gas Industry Forum, had asked for assurance of supply is directly to the Vice President Boediono.
Approximately 10 industry associations that joined in the forum, among others, Rubber Gloves Industry Association, the Indonesian Textile Association, the Association of Ceramic Industry Aneka Indonesia, and Sheet Glass and Safety Association, said only get 800 cubic feet of gas per day. Yet their need of 1,500 cubic feet per day.
Therefore, the domestic industry urges a reduction in natural gas exports, and hope that the government is more concerned with domestic gas needs. They feel the weight if the gas needs to be replaced fuel oil.
Law No. 22/2001 on Oil and Gas was only requires manufacturers to provide 25 percent of gas production for domestic needs. It departs from the assumption, not a lot of domestic demand. Then the remainder should be exported.
Insistence that continues to do a lot of circles to make the government and the parliament held a joint meeting last week. Meeting this thorough-tangung, because it combines a number of Commission IV of the parliamentary commission in charge of agriculture, the Commission V (energy), Commission VI (industry, trade, and SOE) and the Commission VII (reign in the country).
Meanwhile, the executive attended the Coordinating Minister Hatta Rajasa, Trade Minister Mari Elka Pangestu, Minister Darwin Zahedy Saleh, Minister of Industry, MSHidayat, and State Enterprises Minister Mustafa Abubakar.
The result, they agreed to revise the oil and gas law. There is agreement that the obligation to meet domestic supply by 25 percent no longer appropriate. This revision is also in accordance with the mandate of the Special Committee on Fuel DPR period 2004-2009.
Parliament's Joint Committee also urged the government to create an action plan or policy measures for priority projects such as natural gas field Donggi Senoro, Masela and the Natuna D-Alpha.
Council also urged the renegotiation of gas sales contracts abroad. Accelerated production of new gas fields, as well as the development of unconventional gas as coal bed methane or coal gas methane (the gases present in coal deposits).
Gas fields in Indonesia are often located deep in the sea, on a desert island, or even in the middle of the woods. The remoteness of the consumer requires an adequate infrastructure to be utilized. Therefore, the government asked to make an action plan to immediately build infrastructure, particularly transmission and distribution pipelines of natural gas and liquefied natural gas terminal (LNG receiving terminal), as well as compressed natural gas (compressed natural gas).
Well, one of the most important thing again is a matter of reduction agreement and the difference in price of domestic gas price in the market. Government asked to make policy on domestic gas prices are not too low from the market, so that supplies can be more smoothly.
On price, the Executive Agency for Upstream Oil and Gas (BP Migas) has indeed asked PT State Gas Company, as the company's gas distributor, to fix the purchase price is not economical. Economy is viewed from the side of the natural gas industry.
PGN is still buying gas from Tangguh Block in Papua and Grissik Block, South Sumatra under $ 3 (approximately USD 24 thousand) per MMBTU (million metric British units). No wonder the head of BP Migas Priyono compare this price with the sale of gas from the Natuna Block B to Malaysia which was above $ 5 per MMBTU.
According to him, sales of domestic gas prices should be the smallest $ 5 per MMBTU. Perhaps because of that, the gas is still more widely exported abroad because the price could reach no less than $ 12 per MMBTU.
Vice President Boediono when opening the Convention and Exhibition Indonesian Petroleum Association, 34th May, also admitted this. "So there should be a review of pricing policies in the country," he said. Gradually, gas prices will be adjusted to economical.
The assumption, PGN have to pay more. But by buying an economical price, the supply to PGN will go more smoothly with larger volumes. It's just that still a question: whether the domestic industry is pleased with the purchase price is more expensive?
Seems like they would need to secure supply and price. Forum Secretary General Industrial Gas Users Achmad Widjaja never asked for clarification of national economical price for gas, because the government has not been set.
"Do not set a price of $ 6.5 per MMBTU as long as we pay, or above the international price of $ 8 per MMBTU," he said. Dark of the gas distribution is also questioned by them. Distribution is not transparent trigger suspicion that there are industries that receive excess supply, and vice versa.
Let us wait whether the results of a joint meeting could be applied or not
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