New gas price for industries to be effective September 1
Thursday, June 21 2012 - 01:20 AM WIB
Minister of Industry MS Hidayat said that the government is currently making the necessary calculation, in the hope that the new gas price policy would be announced next week.
?It will be announced next week. The government will make a final decision on the gas rice increase sometimes on June 26-27, 2012. It will be effective September 1, 2012. Regarding the size of the increase, and whether it would be made gradually or not, will also be announced at the same time,? Hidayat said on Wednesday following a meeting with Minister of Energy and Mineral Resources Jero Wacik, President Director of PGN, and representatives of industries.
PGN increased its gas price by 55 percent starting May 15, which has prompted widespread protest from industrial customers as the increase was deemed too steep. PGN argued that the increase was necessary because the price of gas charged by the upstream producers have also been increased. Some industrial customers have also demanded that the price increase be made in a gradual manner.
Meanwhile, Jero Wacik said that his office was currently making assessment on the domestic gas demand and supply for the period of 2012-2020. The government expects that domestic gas supply can be fulfilled by several gas fields including Kangean, Tangguh, Kepodang, Natuna, and the field currently being explored by Hess Corporation in East Java.
Meanwhile, Vice Minister of Energy and Mineral Resources Rudi Rubiandini said the PGN new gas price of US$10.2 per mmbtu was too expensive considering that PGN only bought the gas from the upstream producers at a price $5-6 per mmbtu. The $10.2 per mmbtu includes a $2 per mmbtu service fee charged by PGN, a fee which Rudi said was also too high.
Meanwhile, PGN Corporate Secretary Heri Yusuf said that this company was ready to follow whatever decision made by the government on the gas price.(*)