Not Adjusting Non-HGBT Industrial Gas Prices, This Is PGN's Reason

Illustration of Earth gas (Photo: between)

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) stated that it has not adjusted gas prices for the Non-Earth Gas Prices Industry (HGBT).

PGN's Corporate Secretary, Rachmat Hutama explained, according to his role in the natural gas distribution chain, especially on the midstream and downstream sides, PGN is currently trying to optimize various natural gas supply management sources from various types of supply, such as from natural gas wells, the results of Liquefied Natural Gas (LNG) regafiation, and Compressed Natural Gas (CNG) through various infrastructure modes.

"In implementing natural gas distribution, PGN ensures compliance with regulations and alignment with government policies because the determination of downstream gas prices must refer to the regulations of the Minister of Energy and Mineral Resources, Oil and Gas SKK and Oil and Gas BPH," he said in a statement to the media, Thursday, September 7.

It should be noted that downstream natural gas business activities at this time (midstream and downstream) have entered a new era, where natural gas downstream activities are regulated to realize efficient, rational, and transparent natural gas management.

"In determining the cost of transmitting and trading natural gas facilitates, PGN follows the Regulation of the Minister of Energy and Mineral Resources and the Regulation of Oil and Gas BPH," he continued.

He detailed several regulations regarding the cost of natural gas, namely Permen ESDM number 06 of 2016 concerning natural gas allocation, utilization, and purchase prices from Hulu/KKKS set by the Minister of Energy and Mineral Resources, Regulation of BPH Migas number 1 of 2023 concerning transportation rates and Ministerial Regulation of Energy and Mineral Resources Number 58 of 2017 in conjunction with the ESDM Regulation Number 14 of 2019 regarding the cost of trading distribution of natural gas.

"PGN's gas commercialization to customers is strongly influenced by several factors. The first is the gas supply source, the second is the supply price, and the third is the contribution of the volume of each gas supply as well as the midstream and downstream costs of natural gas infrastructure in channeling gas production to customers," explained Rachmat.

He further explained that in the commercialization of gas prices, PGN considered the implementation of laws and regulations or government regulations related to gas production prices issued by the government.

"Regarding this, for now, we have not implemented gas price adjustments," explained Rachmat.

He emphasized that the information previously conveyed was in order to fulfill the GCG and the provisions of the Gas Sale and Purchase Agreement (PJBG) between PGN and industrial customers.

"We are always ready to carry out the function of distributing natural gas to customers according to our roles in Midstream and Downstream. If there are changes to laws and regulations or government regulations regarding gas prices, then PGN will refer to these changes," he concluded.