SKK Migas Calls The Large Government Supporting HGBT For Electricity

Gas prices (Photo: dock. Antara)

JAKARTA - SKK Migas revealed one of the reasons for the allocation of certain natural gas prices (HGBT) not being utilized optimally. The reason is that the government's funds are inadequate to bear the price difference, and most come from the electricity sector.

"So, the most inadequate for the country is electricity, especially those from LNG (liquefied natural gas/liquid natural gas)," said Head of the Natural Oil and Gas Commercialization Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Rayendra Sidik quoting Antara.

In this regard, Rayendra explained an overview of HGBT using a US$6 (US) gas price parable, with a $3 share of investment and production, US$2 for state revenue, and US$1 for contractors.

To make gas prices drop from USD 6 to USD 5, he said, the share reduction should be carried out proportionally. However, to maintain interest in contractors, what is cut is part of state revenue. This difference is covered by the state so as not to interfere with parts for contractors.

"So, the government's share is reduced from USD 2 to USD 1, while the contractor is still USD 1. Actually, the concept is like that. That's HGBT," he said.

In terms of utilizing LNG for electricity, Rayendra explained that the contract between LNG Responsibility and PLN uses fluctuating prices or has sharp ups and downs characteristics.

"Using a contract formula that refers to world oil prices. PLN gets a better price," he said.

However, in the middle of the year, Rayendra said there was a spike in gas prices. The increase resulted in the government having difficulty maintaining gas prices

Untungnya, PLN juga cukup bekerja sama dengan kami. Kami bilang, ini bagian negara tidak cukup (menggung perselisih). (Dijawab) Yaudah, digantija ke harga asalnya. Ya, akhirnya di situ, kembali ke harga, formula asalnya, kata Rayendra pula.