Gas traders must build infrastructures

The government is calling on gas trading companies to build their own infrastructures. Otherwise, they will not be allowed to do the business.

Director General of Oil and Gas IGN Wiratmaja said the Ministry of Energy and Mineral Resources has issued Ministerial Regulation No. 37/2015 on Rules and Procedures for Price Setting and Allocations of Gas which prioritizes the allocation of gas for state owned enterprises owned by the central and regional governments and private companies which already have built their own gas infrastructures.

Private companies which do not have gas infrastructures must build them now in order to be allowed to do the business. Under Ministerial Regulation No. 3/2010 on Allocation and Utilization of Natural Gas for the Fulfillment of Domestic Needs, which has been replaced by the new regulation, a company was allowed to carry out gas trading business even though they did not have their own infrastructures. To do the business, they leased the pipelines owned by state owned gas trader PT Perusahaan Gas Negara (PGN) or PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas firm PT Pertamina.

?The new regulation clearly states in order to get gas allocations, a company must already have their own facilities,? Wiratmaja said.

Companies which have yet to build their own infrastructures may get gas allocations. But they can only take it once they have built their own infrastructures.

Editing by Johannes Simbolon