Upstream producers required to allocate gas output for power plants

Minister of Energy and Mineral Resources Ignasius Jonan will issue a new ministerial decree requiring upstream producers in the country to allocate part of their gas output to gas-fired power plants, Bisnis Indonesia reported on Friday.

The paper quoted Ignasius as saying that the new decree is currently being finalized and is expected to be issued next week.

He said that the new policy will help ensure gas supply for gas-fired power plant projects, both existing and future, and improve efficiency in gas transport. He did not provide details.

Procurement Director at state-owned electricity firm PT PLN Supangkat Iwan Santoso welcomes the upcoming new policy saying it would help ensure gas supply for gas-fired power plant projects.(*)