Pertamina wants LNG plants be part of downstream sector

The government has been asked to treat liquefied natural gas (LNG) plants as downstream businesses because such a policy could enable it to develop them into profit centers, Bisnis Indonesia daily reported Thursday.

?Economically, by classifying LNG plants into downstream businesses, government revenues can increase because the projects can be developed into profit centers,? the paper quoted as saying president director of state oil and gas firm Pertamina, Baihaki Hakim. He did not elaborate.

In other countries, LNG facilities were part of the downstream sector, Baihaki told reporters Wednesday.

Baihaki said however oil production sharing contractors would no doubt oppose this proposal.

Under the current system, LNG plants are included in the upstream sector. (*)