BPH Migas issues new regulation on tariff system for gas distribution via pipeline

By Bernard Loebs

The downstream oil and gas authority BPH Migas has issued a new regulation on the tariff systems for gas distribution via pipeline.

Umi Asngadah, Gas Director at BPH Migas, said that the new BPH Migas Regulation No 8/2013 was issued on August 19 to replace Regulation No 16/P/BPHMIGAS/VII/2008, which was deemed to be no longer in accordance with the development of the pipeline gas distribution business.

According to a copy of the new regulation obtained by Petromindo.com, the tariff for gas distribution via transmission pipeline is calculated by using the postage stamp system, distance system, and entry-exit system.

Under the postage system, same tariff is applied from every receiving point to the delivery point in one route and/or pipeline network. Under the distance system, different tariffs are applied depending on the distance between the receiving point and point of delivery. Meanwhile, the entry-exit system consists of two tariffs: the tariff of entry into a gas pipeline network, and the tariff of exit from the pipeline network.

Editing by Reiner Simanjuntak