BPH Migas drafts new regulation on gas transmission via pipeline

By Godang Sitompul

Downstream oil and gas regulator BPH Migas is drafting a new regulation on gas transmission via pipeline as part of the various new rulings being prepared by the agency this year, according to Chairman Andi M. Someng.

Speaking at a hearing with the House of Representatives Commission VII overseeing the energy sector on Tuesday, he said that among the changes to the existing BPH Migas regulation on gas transmission via pipeline is on the mechanism to determine the transmission tariff in a bid to lure more investors in developing gas pipeline.

Under the current mechanism, tariff is determined after the pipeline has been developed. Under the planned new ruling, there will be a temporary tariff before pipeline is developed, and after the pipeline has been constructed the toll fee will be reviewed again, according to Director of BPH Migas Hendra Fadly.

Elsewhere, Andi said that BPH Migas is also drafting a new regulation on national fuel reserves and on control of subsidized fuel consumption. He did not elaborate.

Editing by Reiner Simanjuntak