Cisem I Pipe Toll Tariffs Have Not Been Determined

Oil and gas pipe illustration (photo: dock. intermediate)

JAKARTA - Director of Oil and Gas Infrastructure Planning and Development of the Ministry of Energy and Mineral Resources (ESDM) Laode Sulaeman said that until now the transportation fee or toll fee for the Cisem I pipeline has not been determined.

Laode said the taruitive was still being discussed by the Upstream Oil and Gas Regulatory Agency (BPH Migas) with PT Perusahaan Gas Negara (PGN).

"PGN is still discussing it because what was offered yesterday at the time of the auction still needs to be negotiated again according to the volume flowed," he told the media when met at the Ministry of Energy and Mineral Resources building, Thursday, December 14.

Laode said, basically the Cisem I Pipe toll fee has been determined in accordance with the gas volume flowed during the due diligence period, but in its implementation the incoming gas demand did not match the volume flowed so there was still a price adjustment.

Just so you know, the flow of gas from the Cisem-1 pipeline targets the Kendal Industrial Estate (KIK) and the Batang Integrated Industrial Zone (KITB).

"During the feasible study of the pipe, it seems that there are a lot of them. As soon as I just wanted to operate Batang, it was too late, it should have been a lot of the industry that has been completed now, many have not finished. This affects the volume that will be channeled, right, now finally this affects this volume, it will be re-calculated first," explained Laode.

Whereas before the auction, the toll fee was agreed to be US $ 0.31 per MMBTU.

"In the final, the toll fee cannot be conveyed. The figure that was released was when the business entity competed (auctioned)," he added.

Laode said that the gas transport rate will only be known in 2024 when the gas has been flowed which will be carried out at the end of December 2023. The 14 industrial tenants at KITB Phase I are targeted to be completed in 2024.

"The calculation of the toll fee will be seen in 2024, approximately the new industry running. This will only be in Kendal when it is running in Batang, you can get a more definite picture," concluded Laode.