HGBT Will Be Extended, Here's The Reaction Of The Upstream Oil And Gas Industry

Illustration. (Photo: Doc. Antara)

JAKARTA - Perpetrators of disbursement of oil and gas (oil and gas) who are members of the Indonesia Petroleum Association (IPA) provide a number of inputs to the government, if the policy of a Specific Earth Gas Price (HGBT) of US$6 per MMBTU to the industry is extended.

It is known that the HGBT policy will end in 2024 and the government has also signaled that the Earth Gas Price Incentive for the industry of 6 US dollars per MMBTU is extended.

Executive Director of the Indonesia Petroleum Association (IPA), Marjolijn Wajong said, natural gas producers will continue to be involved in the HGBT policy if extended, therefore the government needs to consider the economy of gas prices with gas production costs from each gas well.

"We want this supplier to be sustainable, so please make an HGBT policy that will not be wrong this year, for the new policy please consider the economy," said Marjolijn, in his statement, quoted Wednesday, May 7.

Marjolijn continued, in producing natural gas, the Cooperation Contract Contract Contractor (KKKs) together with the Special Task Force for the Implementation of Upstream Oil and Gas Activities (SKK Migas) and the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources have jointly calculated the operational costs and appropriate gas prices, gas price economic considerations are very important to maintain the sustainability of natural gas production activities.

"Actually, the economy is monitored very closely by the government. You know, if the upstream oil and gas starts from the early stages, we always work with Skk Migas and the Directorate General of Oil and Gas with their good knowledge of costs, so please consider this HGBGT policy, so that the supplier can continue because the economy is not disrupted but also the downstream price can be good," he explained.

According to him, HGBT should be one of the things discussed by all stakeholders involved in implementing the policy.

"How is the policy, that's what should be discussed in front of 2024," he added.

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif opened the opportunity to extend the cheap gas price policy for the industry. One of the considerations is its impact on production costs.

It is known, the policy refers to the Specific Natural Gas Price (HGBT) for 7 industrial groups. Namely, fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass, and rubber gloves.