Jakarta, CNBC Indonesia – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed that the allocation of natural gas from seven industrial sectors receiving the Certain Natural Gas Price (HGBT) of US$ 6 per MMBTU has still not been fully absorbed.
SKK Migas Deputy for Finance and Commercialization Kurnia Chairi said that natural gas absorption from the industrial sector receiving HGBT had actually started to improve last year. However, the realization has not yet reached 100% of the allocation set by the government.
“We see that absorption in 7 industries has generally improved in 2023, the realization is above 90%. Why is it not 100% absorbed, we are currently evaluating this, and there are quite a lot of factors,” he said in a webinar, Wednesday (28/2/ 2024).
Kurnia explained that there are at least several factors that make the gas absorption of HGBT recipients not optimal. First, factors from the upstream side itself, where production plans experience operational problems.
“As a result, there are allocations that have been planned in the Ministerial Decree (Ministerial Decree) so there are slight fluctuations, sometimes increasing and maybe decreasing,” he said.
Second, from the midstream and downstream side, there are several industries that have not been able to absorb gas due to operational constraints or due to turn around or maintenance.
“Perhaps there is a temporary shutdown or alternative energy sources, we are currently investigating,” he said.
As is known, as many as seven industrial sectors enjoying HGBT currently consist of the fertilizer, petrochemical, oleochemical, steel, ceramic, glass and rubber glove industries. All of them receive gas supplies below the market price, namely US$ 6 per MMBTU.
[Gambas:Video CNBC]
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