Govt considers expanding subsidy program to boost gas sales at home
Monday, June 30 2003 - 04:22 AM WIB
Part of the plan is to expand existing subsidy facility, which has been enjoyed only by certain gas buyers like fertilizer firms, the paper said.
Head of research and development at the ministry, Simon E. Sembiring said in Jakarta last week that the ministry had formed a special team to study the advantages and disadvantages of increasing the gas sales in the local market.
The move was made amid growing competition and a decline in gas prices in the overseas market. At present, larger parts of the country?s gas production are exported in the form of liquefied natural gas (LNG) to Taiwan, Japan and South Korea.
The planned study, which is expected to be completed next month, among others would cover the possibility of using gas for power plants and transportation as well as the expansion of the infrastructures such as gas pipelines.
Minister Energy and Manpower Purnomo Yusgiantoro had earlier said that the subsidy which was at present enjoyed only by fertilizer producers should be also given to power plants and other buyers.
The volume of gas sold in the domestic market is now only about nine percent. The government predicts the sales of gas in the domestic market will continue to increase in the coming years due growing demand. In the next five years, the demand is expected to increase to 3.7 billion cubic meter per day from 2.8 billion cubic per day at present. (*)