Companies to soon enjoy lower gas price
Saturday, May 21 2016 - 12:19 PM WIB
Agus Cahyono Adi, a director at the Directorate General of Oil and Gas, the Ministry of Energy and Mineral Resources, said Friday that the ministry is expected to issue next week the ministerial implementing regulation for the lower gas price.
He was quoted by Bisnis Indonesia as saying that in the first round of the gas price reduction, 15 gas sales and purchase agreements will be revised, lowering the gas price by between US$1-2 per mmbtu. The paper cited as an example that according to ministry data, price of gas channeled from PT Pertmina EP?s Benggala-1 well in North Sumatra to customer PT PGN Tbk will decline by $1.41 per mmtbu to $6.83 per mmbtu.
Agus was quoted by Kontan as saying Saturday that in the next round of the gas reduction program, 31 gas sales and purchase agreements will be affected.
President Joko Widodo (Jokowi) had on May 3 signed the Presidential Regulation No 40/2016 on lower gas price for certain industries including fertilizer, petrochemical, oleo chemical, steel, ceramics, gloves, and glass.
The Cabinet Secretary said in a statement Wednesday that the lower gas price is retroactive as of January 1, 2016. The new policy is expected to help accelerate growth of the industries, it added.
The lower gas price will not affect the revenue of the gas producers, as it will be shouldered by the government by reducing its revenue split in gas blocks. The revenue split between the government and contractors currently stand at 70:30 percent. (*)
Table: 15 companies set to enjoy lower gas price (US$/mmbtu)
| Companies | old price | new price |
| PGN | 8.24 | 6.83 |
| PIM | 7.25 | 6 |
| PIM | 7.25 | 6.64 |
| Pupuk Sriwidjaja | 6.31 & 6.55 | 6 |
| Indo Raya Kimia | 6.95 | 6 |
| Krakatau Steel | 6.95 | 6 |
| Sadikun Niagamas Raya | 6.95 | 6 |
| Energasindo Heksa Karya (Bitung. Tegal Gede) | 6.95 | 6 |
| Energasindo Heksa Karya (Cilegon) | 6.75 | 6 |
| Pupuk Kujang | 6.48 | 6 |
| Tossa Sakti | 8.22 | 6.93 |
| Petrokimia Gresik | 6.28 | 6 |