Government Must Be Fair in National Gas Trading

INDUSTRY.co.id - Jakarta - The government is considered to be fair to give space for the private sector to participate in gas business in the country, even though Holding BUMN Oil and Gas has been formed.

"Holding BUMN Migas may be one of the objectives is to increase the value of assets and improve the ability to get loans, but the most important is the space for private parties to participate in gas business," said Chairman of the Association of Indonesian Natural Gas Traders Association / INGTA), Sabrun Jamil, when contacted in Jakarta, Tuesday (19/12/2017)

According to Sabrun, the formation of Oil and Gas Holding is in sight where the Ministry of State-Owned Enterprises is speeding up the draft Law on Oil and Gas Holding under the scheme of PT Pertamina (Persero) annexed PT Perusahaan Gas Negara (Persero) Tbk (PGN).

With this holding, Pertamina will control 80 percent of pipeline infrastructure and gas market in Indonesia, making it possible for the company to monopolize the market and supply gas for power plants and industries.

However, he suspects that the entry of PGN to Pertamina actually makes the structure so bulging and difficult to monitor.

"All it takes is to enlarge the business, not to enlarge the structure," he said.

So far, Sabrun sees the Oil and Gas Holding policy only on issues of infrastructure and market tenure, yet there is no clear strategic aim of the government to achieve energy sovereignty.

"There has been no government talk of strategic matters to achieve energy sovereignty," he added, as quoted by Antara.

Furthermore, with the mastery of infrastructure, it will further help Pertamina to distribute the gas obtained from Exxon.

If this is not done, it is predicted that Pertamina will find it difficult to get the market and sell imported gas from Exxon. Because, in addition to excessive domestic gas, gas prices from the United States is also not competitive.

"Previously Pertamina signed long-term contracts, how the current balance sheet calculation? Whereas our gas is abundant and some of the field started production, maybe next 5 years we do not need to import, gas is not absorbed," he concluded.

It is common knowledge that Pertamina wants PGN's "open access" pipeline for its business subsidiary, Pertamina Gas (Pertagas), but with this holding Pertamina can automatically use all the pipes built by PGN.