Govt ensures revision on gas price regulation won’t harm upstream

The ministry of energy and mineral resources (MEMR) has revised its regulation on gas use and price, which adds more industries that will benefit from the special gas price and also reduces upstream gas price from certain gas blocks.

Minister of Energy and Mineral Resources Arifin Tasrif said on Wednesday that the revision will not harm the interest of upstream oil and gas industries as it will only cut the share of government in the gas price structure. (*)

Source: investor daily

MEMR cuts upstream gas price

Source: kontan

The ministry of energy and mineral resources has recently issued a new ministerial regulation (Kepmen ESDM) No.134.K/HK.02/MEM.M/2021 on gas use and price for certain industries. It revises Kepmen No.89/K/10/MEM/2020 on gas use and prices for certain industries.

Based on the revision, the government reduces the upstream gas price from certain oil-gas blocks, which include from the working area of PT Pertamina EP in the JBB and Lampung. The Indonesian Petroleum Association (IPA) Executive Director Marjolijn Wajong said that the gas price cut will not harm the upstream gas industries as the reduction will be borne by the government. (*)