Govt mulls cutting gas price from various blocks
Saturday, January 16 2016 - 06:00 AM WIB
Upstream authority SKK Migas and the Directorate General of Oil and Gas are now reviewing dozens of Gas Sales and Purchasing Agreements (GSPA) in an effort to reduce the selling prices of gas on the domestic market.
The price cut is planned in response to the local industries? concerns over the high price they have to pay for gas sold on the domestic market. The price cut is also mandated in President Joko Widodo?s Phase III Economic Policy Package.
Sampe L Purba, Head of Gas Commercialization Division at SKK Migas, told Petromindo.com that thus far SKK MIgas has identified more than 25 GSPAs that can potentially amended in order to lower the gas prices. The GSPAs involve the supply of a total of 330 bBtud and the areas of supply are located in northern Sumatra, southern Sumatra, West Java and East Java.
?One thing we want to underline is that the government?s plan to lower the gas price will not affect the PSC holders because the government will not reduce the contractors? production shares. PSC holders have also voiced several concerns, including that the price cut should be carried out in a complicated way and they will still able to get the reimbursement of value added tax on the remaining government production share,? Sampe said.
The Ministry of Energy and Mineral Resources have said the government will reduce its production share to allow for the price cut.
Meanwhile, Director General of Oil and Gas IGN Wiratmaja said his office is focused on GSPAs that set gas price at above $6 per mmBtu in selecting GSPAs for amendment. The President will issue a presidential regulation on the price cut, he added.
Several GSPAs with price of above $6/mmbtu now under review are as follows:
| No | Sellers | Buyers | Gas sources Regions/Provinces | Gas price per August 2015 (USD/mmbtu) | Average supplies January-August 2015 (bbtud) |
| 1 | PT Pertamina EP | PGN (North Sumatra) | North Sumatra | 8.24 | 5.54 |
| 2 | PT Pertamina EP (Benggala-1 well) | PGN (North Sumatra) | North Sumatra | 8.24 | 0.84 |
| 3 | ConocoPhillips Grissik Ltd. | PGN (Riau) | South Sumatra | 6.99 | 12.09 |
| PGN (Riau) ? Gas SUBAN | South Sumatra | 6.99 | 1.30 | ||
| PGN (Riau) ? Gas GELAM | South Sumatra | 6.99 | 0.06 | ||
| 4 | PHE Jambi Merang, Talisman (Jambi Merang) Ltd., Pacific Oil & Gas (Jambi Merang) Ltd. | PDPDE | South Sumatra | 6.08 | 8.21 |
| 5 | PHE Jambi Merang, Talisman (Jambi Merang) Ltd., Pacific Oil & Gas (Jambi Merang) Ltd. | PT Pembangunan Kota Batam | South Sumatra | 6.28 | 7.40 |
| 6 | PHE Jambi Merang, Talisman (Jambi Merang) Ltd., Pacific Oil & Gas (Jambi Merang) Ltd. | PT Pengembangan Investasi Riau | South Sumatra | 6.83 | 5.91 |
| 7 | PT Medco EP Indonesia (Blok SS) | PT Mitra Energi Buana | South Sumatra | 6.56 | 3.82 |
| 8 | PT Pertamina EP | PGN (Sunyaragi branch) | West Java | 7.50 | 1.81 |
| 9 | KKKS ONWJ | PT Pertamina (Persero) (RU VI Balongan refinery) | West Java | 8.00 | 22.35 |
| 10 | PT Pertamina EP | PT Banten Inti Gasindo | West Java | 6.75 | 7.67 |
| 11 | PT Pertamina EP | PT Bayu Buana Gemilang | West Java | 6.92 | 12.25 |
| 12 | PT Pertamina EP | PT Bina Bangun Wibawa Mukti | West Java | 6.37 | 19.09 |
| 13 | PT Pertamina EP | PT Energasindo Heksa Karya (Bitung) | West Java | 6.75 | 7.68 |
| 14 | PT Pertamina EP | PT Energasindo Karya (Tegal Gede) | West Java | 6.75 | 2.78 |
| 15 | PT Pertamina EP | PT Energasindo Heksa Karya (Cilegon) | West Java | 6.75 | 1.94 |
| 16 | PT Pertamina EP | PT Fajar Surya Wisesa Tbk | West Java | 6.53 | 18.29 |
| 17 | PT Pertamina EP | PT Indo Raya Kimia | West Java | 6.75 | 2.34 |
| 18 | PT Pertamina EP | PT Krakatau Steel | West Java | 6.75 | 8.27 |
| 19 | PT Pertamina EP | PT Pelangi Cakrawala Losarang | West Java | 6.90 | 3.15 |
| 20 | PT Pertamina EP | PT Rabama Gasindo Makmur | West Java | 6.75 | 2.69 |
| 21 | PT Pertamina EP | PT Sadikun Niagamas Raya (Cilegon) | West Java | 6.75 | 1.40 |
| 22 | PT Pertamina EP | PT Sadikun Niagamas Raya (Karawang) | West Java | 6.75 | 1.83 |
| 23 | PT Pertamina EP (TAC P-Ellipse Jatirarangon Wahana Ltd.) | PGN | West Java | 6.75 | 1.12 |
| 24 | Kangean Energy Indonesia Ltd. | PT Indogas Kriya Dwiguna | East Java | 6.41 | 18.04 |
| 25 | Kangean Energy Indonesia Ltd. | PT Pertagas Niaga | East Java | 6.41 | 74.75 |
| 26 | Lapindo Brantas Inc. | PT Indogas Kriya Dwiguna | East Java | 6.26 | 1.73 |
| 27 | Lapindo Brantas Inc. | PGN | East Java | 7.65 | 2.06 |
| 28 | PHE WMO, Kodeco, MMB | PGN | East Java | 7.76 | 14.42 |
| 29 | PHE WMO, Kodeco, MMB | PT Gresik Migas | East Java | 7.11 | 9.92 |
| 30 | PT Pertamina EP | PT Tossa Shakti | Central Java | 8.22 | 1.59 |
| ? | TOTAL | ? | 275.95 | ||
| Source: SKK Migas | |||||
Editing Johannes Simbolon