Evita: higher domestic gas price should trigger more investments

Director general for oil and gas Evita H. Legowo said that higher gas price domestic buyers willing to pay should encourage more investment in the gas development projects.

She cited the recent gas price deal agreed to be purchased by PT Pupuk Iskandar Muda (PIM) from Mahakam block at US$8 per MMBTU.

?This was the highest price ever agreed to by domestic fertilizer company. This is a very encouraging development. In the past, fertilizer companies bought gas at a price of $5 per MMBTU,? said Evita.

?Investor should not worry because domestic buyers have the capability to purchase gas at higher price,? said Evita.

Deputy chairman of upstream oil and gas regulator BPMIGAS, Hardiono, said the key to lure investors to invest in natural gas projects is the commercial viability of the project.

"As long as the price of gas is commercially viable, investors will not hesitate to invest in Indonesia,? he said. (godang)