| Gas Allocation Policy Forward |
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| Monday, 05 December 2011 08:35 | |||||||
Page 1 of 2 JAKARTA - In order to meet domestic demand continues to rise, the government has established a policy in the future allocation of natural gas, among other priority uses of natural gas for domestic needs while considering economic development field.
"In addition, encouraging domestic gas consumers to buy gas with the economical price," said Director General of Oil and Mineral Resources Ministry Evita H. Legowo in INGTA Seminar, last weekend. Another policy is the allocation of the utilization of new gas reserves discovered, prioritized to meet local needs. If there is excess, the government has the authority to determine the utilization of natural gas for export, but requires the commitment of investors to contribute to the development of infrastructure or the development of domestic oil and natural gas. Regarding the allocation of gas to domestic policy (DMO) is explicitly not only to the contractors, but also aimed at the government's gas. In order to utilize natural gas for domestic needs, obviously Evita, the government regulate and set prices or natural gas, which refers to economic development and infrastructure field. Prices of natural gas, can be escalation, associated with oil prices, products, and a combination of both. Evita explained, the selection model considering the price of natural gas revenues by considering the optimal economic growth. Consider the pricing of natural gas equivalence between the interests of producers and consumers of natural gas. Some gas prices prevailing at this time: Flat throughout the contract period (applies old contracts) in the early period of sale of gas (circa 1070's). Escalation (between 2-3% per year) revolves around the 1990's. Based on the results of the product (such as urea and ammonia). Based on oil prices in Japan (Japan Crude Cocktail / JCC).
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