Govt told to implement gas pipeline open access policy

The House of Representatives Commission VII overseeing the energy sector, urged the government to implement the gas pipeline open access policy in accordance with the existing Minister of Energy and Mineral Resources (MEMR) Regulation No 19/2009, reports said Thursday.

During a hearing session on Wednesday with top officials of state-owned oil and gas firm PT Pertamina, and state-controlled gas distribution firm PGN, many Commission VII members expressed their support for the implementation of the open access policy, arguing that it would improve efficiency and transparency in gas distribution, thus benefiting consumers particularly industrial users and power plant operators.

Lawmaker Milton Pakapahan of the ruling Democrat Party warned PGN to follow existing regulations and seriously implement the open access policy for its entire gas pipeline so that domestic gas consumers could enjoy lower prices.

Meanwhile, PGN President Director Hendi P. Santoso said that the company has already implemented the open access policy for its 2,000 km gas transmission pipeline. He acknowledged, however, it has yet to implement the policy for the 4,000 km gas distribution pipeline.

The calls from the lawmakers came after the MEMR decided to review the open access policy to take into account the technical and economic considerations.

The open access policy is seen to put PGN at a disadvantage in competing with PT Pertagas, a gas distribution subsidiary of Pertamina. While PGN controls much of the existing gas pipeline in the country, Pertagas has much better access to gas reserves via Pertamina. (*)