BPH Migas to review 52 gas pipelines

Petromindo|Dasir

Downstream oil and gas authority BPH Migas plans to review 52 gas transmission pipelines distributing gas to consumers across the country once the Ministry of Energy and Mineral Resources has issued the planned new ministerial regulation that would among others limit the profit margin of gas traders.

BPH Migas Head Fanshurullah Asa said on Monday that the planned review of the 52 gas pipelines is made to help ensure lower gas price for consumers.

He said that there are currently 55 gas pipeline sections across the country, but BPH Migas will first focus on the 52 pipeline sections. ?There are 52 dedicated gas transmission pipelines that must lower their toll fee,? he said.

As has been previously reported, Minister of Energy and Mineral Resources Ignasius Jonan plans to limit the profit margin of gas traders at 7 percent, and internal rate of return of 11 percent in a bid to help lower gas price for industries as instructed by the president to help improve competitiveness of domestic manufacturing sector.

Meanwhile, Deputy Minister of Energy and Mineral Resources Arcandra Tahar said in a statement that the ministry will review the country?s gas balance to better determine the country?s gas consumption and production volume, and to decide whether Indonesia will need to import LNG in the future to help meet gas demand, and at what volume.

He added that as the country will also require new floating storage and regasification units (FSRUs), and as the largest domestic LNG consumer is state-owned electricity firm PT PLN, the future FSRU development must be located near PLN power plants. But before deciding how many FSRUs to be built, the national gas balance must first be reviewed, he said.

Arcandra added that the planned review of the gas balance will be made amid lingering large uncommitted LNG cargoes in the country for this year and next. (*)