More competitive gas price at home a priority: BPMIGAS

Upstream authority BPMIGAS will continue to facilitate the creation of a more competitive domestic gas price, saying it is the best way to meet and ensure a sustainable supply for the ever-increasing demand at home.

BPMIGAS has done just that in that direction, as evident in the continued rise in average price of gas for domestic market, Chairman R. Priyono said in his speech addressing an international gas conference in Kuala Lumpur on Wednesday.

At present, he said, the gas price sold to domestic market averaged US$5 per mmbtu, far higher than the average of two or three years ago.

The higher price would entice more investors and development in the upstream gas sector, he added. ?A more sustainable supply will be ensured as a result.?

In addition to pricing issue, an increasing gas demand requires rapid development of infrastructure as well, he said, pointing as an example the fact that gas production is mostly centered in Kalimantan and Papua, while the biggest consumers are in Java.

The prioritization of domestic market does not mean Indonesia will abandon exports as it will continue to retain its traditional gas importers such as Japan, Korea and Taiwan. In fact, Priyono said, Indonesia would turn more to the ASEAN market in line with the region?s aggressive move in developing gas receiving terminals.

?We will proactively increase our gas export to other ASEAN members.?

Editing by Dadan Wijaksana