BPH Migas issues regulation on pipeline tariffs
Saturday, December 7 2013 - 05:02 AM WIB
Downstream authority BPH Migas has issued a regulation on tariffs payable by users to pipeline owners in line with the implementation of open access principle on the national gas pipeline network.
Head of Working Group for Management, Tariff and Price at BPH Migas Sri Wahyu Purwanto said the BPH Regulation No. 8/2013 on Determination of Tariffs for Transportation of Natural Gas through Pipelines set different tariff systems for transmission and distribution pipelines.
?Tariffs for transmission pipelines are calculated using distance system, postage stamp system, and entry-exit system,? said Sri at Conference on Indonesian Oil & Gas 2014 Outlook in Jakarta, on Thursday.
Meanwhile, he said, tariffs for distribution pipelines are calculated using zoning system.
As a matter of fact, he said, users prefer a tariff system based on distance for distribution pipeline, while owners want a tariff system based on zones to guarantee returns of their investment.
"The solution is that the regulation does not differentiate open access pipeline from dedicated downstream pipeline. In principle, all pipelines will be gradually be made open access. In addition, according to BPH Migas, distribution pipeline should use tariffs based on zones," he asserted.
Editing by Johannes Simbolon