JAKARTA. The Ministry of Energy and Mineral Resources has formulated three schemes to implement President Joko Widodo’s instruction to decrease the gas price to US$5 per mmbtu.
Those three schemes include amending 31 contracts on gas trade, creating gas cluster based on the gas supply and buyer’s locations, as well as regulating import.
Director General of Oil and Natural Gas Affairs at Ministry of Energy and Mineral Resources IGN Wiratmaja said that government is reviewing a number of contracts to decrease the gas price. “(We are reviewing) all contracts with a upstream price more than US$4 per mmbtu”, he said.
Meanwhile the care taker of Minister of Energy and Mineral Resources Luhut Binsar Panjaitan said that the ministry will create gas cluster in allocating gas production. Under the scheme, the gas produced in the western part of Indonesia will be allocated to the consumers in the western part of Indonesia. The similar scheme will apply to the gas produced in the eastern part of Indonesia.
Luhut added that the imported gas may be allocated to the western part of Indonesia, if the local gas productions are not sufficient to fulfill the local demands. At the same time, government will export gas produced in the eastern part of Indonesia.
VP for Development and Relations Affairs of Conoco Philips Joang Laksanto has not yet made comment in responding to the governmentt’s policy on contract amendment. “The contract has to be agreed by the both sides”, he said.
Meanwhile VP for Corporate Communication of PT Pertamina Wianda Pusponegoro said that the company expects for comprehensive solutions from both upstream to downstream sides.
(MUHAMMAD FARID/Translator)
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