Aceh's gas revenue to sharply drop in four years

A councilor of the Aceh province called on the central government to soon implement the Intergovernmental Fiscal Balance Law No 25/1999 to allow the province to take a large part of its gas revenue, citing the province's gas output would sharply drop in four years, Serambi Indonesia reported.

Head of the Commission C of Aceh's council Djamaluddin Achmad said the province had only small time left to enjoy its gas revenue due to the declining production of its liquefied natural gas (LNG).

Citing reports from PT Arun NGL Co -- the sole producer of LNG in the province and one of the two LNG centers of the country - he said the company would stop operating two of its six LNG trains this year, curtailing its annual output to 120 vessels from 194 vessels last year.

The company produced 203 vessels of LNG in 1997 and 197 vessels the following year.

The reports further said Arun's LNG output would continue to decrease to 117 vessels annually between 2001 and 2003 and further drop to 113 vessels in 2004.

As of 2005, the company would only operate two trains with a total annual output of 55 vessels.

According to Djamaluddin , the earnings from the 55 vessels of LNG would only be enough to cover production costs and tax payment.

"With the amount of output, we shall not be able to enjoy a large portion of the gas revenue," he said.

Thereby, Djamaluddin said, his commission would strongly push the central government to soon implement the Intergovernmental Fiscal Balance Law in the province.

He said his commission had held meetings with several ministers, president of state-owned oil and gas company Pertamina Baihaki Hakim and President Abdurrahman Wahid to express the request.

He said Baihaki and Abdurrahman did not object to the request.

Arun is one of the two LNG centers of the country with another one located in Badak, Bontang, and East Kalimantan. (*)