Oil, gas contractors may enter power business

Petromindo

The Ministry of Energy and Mineral Resources is drafting a new regulation on power plant development located near gas sources, which would provide opportunity for oil and gas contractors to enter power generation business, Kontan reported on Thursday.

The paper quoted Director General of Electricity Jarman as saying that the new regulation is expected to be issued within the next one or two months.

He said that building power plants near gas sources will cut down cost as there will no longer be the need for pipeline.

Ministry Spokesman Sujatmiko said that the new regulation will provide opportunity for shareholders of oil and gas companies having gas fields to build gas-fired power plants, but they must set up separate entities.(*)