Gas trading firms must have infrastructure facilities

The government will require gas trading firms to have infrastructure facilities such as storage and pipeline or their permit will be revoked, reports said on Monday.

Minister of Energy and Mineral Resources Sudirman Said stated that the move is part of efforts to root out rent seekers. Gas trading firms which do not have infrastructure facilities are considered as rent seekers because they merely transferred the allocated gas supply to other parties.

Sudirman said that Minister of Energy and Mineral Resources Regulation No 7/2005 and Minister Regulation No 19/2009 will be revised to facilitate the change in policy.

Meanwhile, acting Director General of Oil and Gas, I.G.N. Wiratmadja estimated that there are more than 10 gas trading firms which do not have infrastructure facilities. Meanwhile, about 15-20 firms already have infrastructure facilities. (*)