Gas traders required to build infrastructure facilities

The government will require gas traders to have own infrastructure facilities to be able to obtain gas allocation.

Minister of Energy and Mineral Resources Sudirman Said stated on Wednesday that Ministerial Regulation No 37/2015 is currently in the process of being revised, which is expected to be completed before mid this year.

Once the regulation has been revised, the ministry will carry out due diligence on the gas traders to verify the infrastructure facilities they have.

An investigation carried out by upstream oil and gas authority SKK Migas has revealed that there a total of 74 gas traders, of which only 15 have infrastructure facilities.

Director General of Oil and Gas at the ministry IGN Wiratmaja Puja said that the government will not immediately shut down the gas traders which don?t have infrastructure facilities, but will first persuade them to develop the facilities.

The move is part of efforts by the government to streamline gas supply chain in the country to help lower gas price at consumers level.

Editing by Reiner Simanjuntak