SKK Migas Urges Govt to Review Cheap Industrial Gas Price

By Editorial Team 06/10/2022
Summary

The Upstream Oil and Gas Business Regulatory Task Force (SKK Migas) assessed that the government needs to review the low gas prices policy by up US$6 per MMBTU for certain industries since each gas field project has a different economic value. "It depends on the project because the infrastructure of the facilities being built differs in each field. It should review case by case and cannot be generalized," SKK Migas Secretary Taslim Z. Yunus said on Wednesday.

According to him, SKK Migas has held discussions with the government on a proposal to review the policy for fixing certain natural gas prices (HGBT) by up to US$6 MMBTU without revealing the talks in detail.

Head of SKK Migas Dwi Soetjipto said, referring to Presidential Regulation No. 121/2020 on Natural Gas Price Determination, HGTB by up to US$6 per MMBTU is evaluated annually by taking into account the economical price. "We don't know yet [if HGTB will be evaluated]. But, if the [upstream oil and gas] industry has not developed, it needs to be reviewed," he said.

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