Gas prioritized for transportation, households, small business
Tuesday, November 10 2015 - 02:08 PM WIB
The government will prioritize gas allocation for transportation sector, households and small businesses in line with the newly-issued Minister of Energy and Mineral Resources Regulation No. 37/2015, Director General of Oil and Gas IGN Wiratmaja said.
Under the regulation, second priority will be given to activities of increasing the national oil and gas production (Previously, this sector got the first priority)
The third priority will be given to fertilizer industry, industries that use gas as raw materials and fuel, and power plants.
The Ministerial Regulation No. 37/2015 on Rules and Procedures for the Determination of Gas Prices and Allocations which was issued on Oct. 23, 2015 replaces Ministerial Regulation No. 3/2010 on Allocation and Utilization of Natural Gas for the Fulfillment of Domestic Needs.
One of the key points in the ministerial regulation is the obligation for gas traders to build their own gas pipeline infrastructures. At present, many companies do gas trading business although they don?t have pipeline networks (which was permitted under the previous regulation). This is blamed as the main factor behind the high price of gas on the domestic market.
Editing by Johannes Simbolon