Govt to limit gas export

Tuesday, June 17 2014 - 02:08 AM WIB

The government has set a special inter-ministerial team in charge of drafting a new regulation that would limit or ban the export of natural resources including gas to help ensure supply for domestic industries, Kontan reported on Tuesday.

The planned new regulation is an implementing regulation of Law No 3/2014 on industry.

Team leader Setyo Hartono said that the team is currently making calculation on the domestic gas requirement. According to data from the Ministry of Industry, the gas requirement of domestic industry in 2014 is estimated at 2,233.93 mmscfd. If the calculation made by the team proves that domestic industry requirement can already be fulfilled by the existing supply arrangement, the country?s gas production can be allowed for export. ?The calculation is expected to be completed in July,? Setyo said.

Secretary General of the Ministry of Industry Anshari Bukhari said that the regulation on limiting gas export was expected to be completed before the end of the term of the current administration in October of this year.

Separately, Minister of Energy and Mineral Resources Jero Wacik was quoted by Bisnis Indonesia daily on Tuesday as saying that the ministry was planning to double the domestic market obligation (DMO) of gas producers in the country to 50 percent next year from the current 25 percent part of a strategy to help ensure domestic energy security.

Jero was speaking during a hearing with the House of Representatives Commission VII on energy and mining Monday. (*)

Gas requirements of industry per region (mmscfd)

Region 2012 2013 2014
Nangroe Aceh Darussalam 130.00 130.00 130.00
Northern part of Sumatera 34.23 36.10 36.62
Central, Southern part of Sumatera 257.12 257.13 257.14
Western part of Java 810.03 824.17 825.01
Central part of Java 19.88 20.86 21.01
Eastern part of Java 259.51 258.28 291.54
Eastern part of Kalimantan 529.27 529.27 546.77
Southern part of Sulawesi 0.06 0.06 0.06
Central part of Sulawesi - 70.00 70.00
Papua - - -
Riau Islands 55.77 55.77 55.78
Southern part of Maluku - - -
Total 2.095.87 2.181.64 2.233.93
Source: Ministry of Industry

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