Gas price for industries in N. Sumatra cut down to $9.95
Thursday, February 9 2017 - 01:06 AM WIB
The government has cut down the price of gas for industries in North Sumatra Province to US$9.95 per mmbtu from $13.38 per mmbtu previously. The new price has been effective since February 1 of this year.
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGN Wiratmaja Puja said in a statement on Wednesday that the new price was a result of lengthy discussions with upstream producers such as PT Pertamina Hulu Energi (PHE) and PT Pertamina EP, both subsidiaries of state-owned oil and gas firm PT Pertamina.
?Yesterday we had a meeting again whether it (the gas price) can be further lowered. Our friends at PHE and Pertamina EP (were) willing to lower it again,? he said at the International Indonesia Gas Expo 2017 as quoted by the statement.
Wiratmaja explained that the gas price could be reduced after replacing LNG with pipeline gas. ?Previously (the gas price) was expensive, (so) we replace the LNG with pipeline gas so the price can go down. In Medan, the industries will use pipeline gas, while the LNG will only be for power plants,? he said, referring to the provincial capital city.
The statement said that gas sales and purchase agreements will have to be adjusted to the new gas price.
Editing by Reiner Simanjuntak