SKK Migas Ensures Sufficient Domestic Gas Supply And No Price Increases Upstream

Illustration of Gas Pipes (between)

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) ensures the adequacy of gas supply for domestic purposes and there is no policy of increasing gas prices upstream.

Head of the SKK Migas Program and Communication Division, Hudi D Suryodipuro, explained that based on SKK Migas data, in several areas such as East Java, there is an excess of gas supply, due to production above gas consumption for East Java and Central Java.

"Until now, it can be ascertained that there is no Government policy to increase gas prices upstream. SKK Migas also ensures that national gas production is sufficient to meet domestic gas supply, including pipeline gas supply in Sumatra and in the form of LNG," said Hudi in Jakarta, Friday, August 18.

Hudi added that national gas production exceeds domestic gas consumption, which currently absorbs about 67 percent of the existing gas production.

SKK Migas assured the upstream oil and gas industry to fully support efforts to increase domestic gas absorption. "In the near future, 6 gas projects will be onstream in the second half of 2023, with a total capacity of around 394 million cubic feet per day (MMSCFD) derived from the Baronang Gas field development optimization project (OPL), GBFCP Premier Oil, Seng Compressor, Segat Compressor, LTRO 18 Medco Grissik and MAC HCML," explainedHudi.

Thus, it is certain that the national gas supply is expected to increase even more with the gas project included in the National Strategic Project (PSN), namely the Tangguh Train 3 project.

"The gas allocation from Tangguh Train 3 is prioritized for domestic purposes, so it can be ascertained that domestic gas needs can be met as a whole", said Hudi.

Regarding the difference in gas prices in the field, Hudi said that each field has different characteristics so that it will have a different economy. Therefore, Hudi said that for example there is a gas movement in one field that will not affect other gas fields.

Hudi explained that SKK Migas provides support to the Government to reduce gas prices upstream, such as tiered evaluations and fiscal policies, as well as implementing the provisions of Gas Prices specifically as stipulated by the Government on the policy of Certain Natural Gas Prices (HGBT).

"The various efforts that have been made by SKK Migas require synergy with all relevant parties to ensure that gas can be accepted by end users at a reasonable price, including participation from the Downstream that distributes the gas to end users," concluded Hudi.