Gas Price Rules Not Effective

Implementation of Presidential Regulation No. 40 of 2016 which sets a certain price of natural gas for seven industrial sectors of 6 US dollars per million metric british thermal unit has not been effective. Therefore, there is no regulation of the Minister of Energy and Mineral Resources that can be implemented to execute the regulation.

Thus, among others the results of focus group discussions on the needs of gas for industry attended by stakeholders at the Ministry of Industry (Kemenperin), Jakarta, Tuesday (17/10). At the forum, General Chairman of the Forum, Industrial Gas Gas (FIPGB) Achmad Safiun for the umpteenth time conveyed the hope that industrial gas prices could be lowered.

Moreover, President Joko Widodo in Limited Cabinet Meeting, October 4, 2016, has instructed the gas price for the industry 5-6 US dollars per MMBTU to strengthen industrial competitiveness.

In the discussion forum was revealed, a meeting was held with the Ombudsman at the Coordinating Ministry of Economic Affairs in August 2017. The meeting was to respond to complaints from FIPGB about the implementation of Presidential Regulation No. 40/2016 which has not been effective. The explanation of the Ministry of Energy and Mineral Resources on the Presidential Regulation that has not yet been implemented is still awaited.

Although implemented, Regulation of Minister of Energy and Mineral Resources No. 40/2016 on natural gas price for three industrial sectors is also not in line with Presidential Regulation No. 40 / 2016. The gas price for the three industrial sectors is at least 6 US dollars per MMBTU. In fact, the mandate of Presidential Regulation No. 40/2016 mentions, certain natural gas prices for seven industrial sectors up to 6 US dollars per MMBTU in plant gate.

Happy Bone Zulkarnaen, Special Staff of the Minister of Industry, while giving a speech at the focused discussion forum, said that natural gas is the third primary energy after oil and coal is the most widely used in the country.

"This can not be separated from Indonesia's natural gas reserves reaching 144.06 TSCF (trillions of standard cubic feet),"

IN INDONESIA

Aturan Harga Gas Belum Efektif

lmplementasi Peraturan Presiden Nomor 40 Tahun 2016 yang menetapkan harga gas bumi tertentu untuk tujuh sektor industri sebesar 6 dollar AS per juta metrik british thermal unit belum efektif. Sebab, belum ada peraturan Menteri Energi dan Sumber Daya Mineral yang dapat diimplementasikan untuk mengeksekusi peraturan tersebut.

Demikian, antara lain hasil diskusi kelompok terfokus mengenai kebutuhan gas untuk industri yang dihadiri pemangku kepentingan di Kementerian Perindustrian (Kemenperin), Jakarta, Selasa (17/10). Pada forum itu, Ketua Umum Forum Industri Pengguna Gas Bumi (FIPGB) Achmad Safiun untuk kesekian kali menyampaikan harapan agar harga gas industri bisa segera diturunkan.

Apalagi, Presiden Joko Widodo dalam Rapat Kabinet Terbatas, 4 Oktober 2016, sudah menginstruksikan harga gas untuk industri 5-6 dollar AS per MMBTU untuk memperkuat daya saing industri.

Dalam forum diskusi terungkap, sudah dilaksanakan rapat dengan Ombudsman di Kementerian Koordinator Perekonomian pada Agustus 2017. Rapat itu untuk menanggapi pengaduan dari FIPGB tentang implementasi Peraturan Presiden Nomor 40/2016 yang belum efektif. Penjelasan Kementerian ESDM mengenai Peraturan Presiden yang belum diimplementasikan itu masih ditunggu.

Kendati sudah diimplementasikan, Peraturan Menteri ESDM Nomor 40/2016 tentang harga gas bumi untuk tiga sektor industri juga belum selaras dengan Peraturan Presiden Nomor 40/ 2016. Sebab, harga gas untuk tiga sektor industri tersebut minimal 6 dollar AS per MMBTU. Padahal, amanat Peraturan Presiden Nomor 40/2016 menyebutkan, harga gas bumi tertentu untuk tujuh sektor industri maksimal 6 dollar AS per MMBTU di plant gate.

Happy Bone Zulkarnaen, Staf Khusus Menteri Perindustrian, saat memberikan sambutan pada forum diskusi terfokus tersebut mengatakan, gas bumi merupakan energi primer ketiga setelah minyak bumi dan batubara yang paling banyak digunakan di dalam negeri.

”Ini tidak lepas dari cadangan gas bumi Indonesia yang mencapai 144,06 TSCF (trillions of standard cubic feet),”

Kompas, Page-18, Wednesday, October 18, 2017

Narrow Price Disparity of Industrial Gas

The issue of gas prices is still a homework that the government must address. One of them is related to price imbalances that are considered less profitable to industry players. According to the special staff of industry minister Happy Bone Zulkarnaen, there are several reasons for the disparity of industrial gas prices.

"This is due to differences in the field economy, the distance between users and gas sources, types of gas sources, gas infrastructure, and market competition involving producers and consumers," Happy said.

In 2016, the average gas price is USD 5.62 per million metric British thermal unit (mmbtu) for the industry. Meanwhile, in Indonesia there is a high price disparity in the industrial sector. The lowest price is only USD 0.22 per mmbtu and the highest price reaches USD 8.62 per mmbtu.

"The government is trying to narrow the space of disparity by ensuring supply availability, improving distribution infrastructure, and price regulation," he said.

Happy asserted that the government through Regulation of Minister of Energy and Mineral Resources No. 40 of 2016 also provides special price adjustment to the fertilizer industry, petrochemical industry, and steel industry. Among the 86 companies submitted by the Ministry of Industry, only eight companies are getting discounted gas prices.

The eight companies are PT Kaltim Parna Industri, PT Kaltim Methanol Industries, PT Pupuk Kalimantan Timur, PT Pupuk Kujang Cikampek, PT Pupuk Sriwidjaja Palembang, PT Pupuk Iskandar Muda, PT Petrokimia Gresik and PT Krakatau Steel. Meanwhile, 78 companies from the steel industry, petrochemical industry and fertilizer industry are waiting for the decline in industrial gas prices as proposed by the Ministry of Industry.

"We are waiting for the latest EMR Minister Regulation to allow 78 companies to participate in getting the gas price decline," said Director of Upstream Chemical Industry Ministry of Industry Muhammad Khayam.

He added that too expensive gas prices will result in companies likely to hold expansion. In addition, the decline in industrial gas prices may lead to increased industrial revenues. In the end, it also enlarges the state income from taxes.

"Not to mention if the company exports it there will be foreign exchange so cover the decline in the upstream," said Khayam.

IN INDONESIA

Persempit Disparitas Harga Gas Industri

Persoalan harga gas masih menjadi pekerjaan rumah yang harus diatasi pemerintah. Salah satunya berkaitan dengan ketimpangan harga yang dinilai kurang menguntungkan pelaku industri. Menurut staf khusus menteri perindustrian Happy Bone Zulkarnaen, ada beberapa alasan terjadinya disparitas harga gas industri. 

"Hal itu disebabkan perbedaan keekonomian lapangan, jarak antara pengguna dan sumber gas, jenis sumber gas, infrastruktur gas, serta persaingan pasar yang melibatkan produsen dan konsumen,” jelas Happy.

Pada 2016, harga rata-rata gas bumi USD 5,62 per million metric British thermal unit (mmbtu) untuk industri. Sementara itu, di Indonesia terdapat disparitas harga yang tinggi dalam sektor industri. Harga terendahnya hanya USD 0,22 per mmbtu dan harga tertinggi mencapai USD 8,62 per mmbtu. 

"Pemerintah berupaya mempersempit ruang disparitas dengan menjamin ketersediaan pasokan, pembenahan infrastruktur penyaluran, dan pengaturan harga,” katanya.

Happy menegaskan bahwa pemerintah melalui Peraturan Menteri ESDM No 40 Tahun 2016 juga memberikan penyesuaian harga khusus kepada industri pupuk, industri petrokimia, dan industri baja. Di antara 86 perusahaan yang diajukan Kementerian Perindustrian, hanya delapan perusahaan yang mendapatkan potongan harga gas.

Delapan perusahaan tersebut adalah PT Kaltim Parna Industri, PT Kaltim Methanol Industri, PT Pupuk Kalimantan Timur, PT Pupuk Kujang Cikampek, PT Pupuk Sriwidjaja Palembang, PT Pupuk Iskandar Muda, PT Petrokimia Gresik, dan PT Krakatau Steel. Sementara itu, 78 perusahaan yang berasal dari industri baja, industri petrokimia, dan industri pupuk sedang menunggu penurunan harga gas industri seperti yang diajukan Kementerian Perindustrian. 

"Kami sedang menunggu Peraturan Menteri ESDM terbaru agar 78 perusahaan itu bisa ikut mendapatkan penurunan harga gas," ujar Direktur Industri Kimia Hulu Kementerian Perindustrian Muhammad Khayam.

Dia menambahkan, harga gas yang terlalu mahal akan mengakibatkan perusahaan cenderung menahan ekspansi. Selain itu, penurunan harga gas industri dapat mendorong peningkatan pendapatan industri. Pada akhirnya, itu juga memperbesar pendapatan negara dari pajak. 

”Belum lagi kalau perusahaan itu ekspor nanti ada devisa sehingga tertutupilah penurunan di hulu itu,” kata Khayam.

Jawa Pos, Page-7, Wednesday, October 18,  2017

One Bontang LNG Train Destroyed

PT Badak NGL, Bontang LNG Plant Manager, will dismantle one unit of gas processing facility (train) next year as natural gas supply falls. Badak NGL has eight train. Closure of one gas processing facility to save operating and maintenance costs.

President Director of PT Badak NGL Didik Sasongko said that the current production of LNG liquefied natural gas (LNG) tends to be stable.LNG production from Bontang refinery in 2016 is about 172 cargoes.However, since the last 3 years it has only used four refineries with one unit as backup.

Meanwhile, three other refineries were not used because the natural gas supply to the refinery was down. Currently, Badak NGL shares are held by PT Pertamina 55%, Vico Indonesia 20%, Total E & P Indonesie 10%, and Japan Indonesia LNG Company (JILCO) 15%.

The unloading process of one unit of three unused refineries will begin next year. The reason, Badak NGL need to spend to do the maintenance despite the unit is not used.

"Administratively it has not started yet. In 2018 we begin to disassemble one refinery, "he said, Monday (16/10).

The demolition plan has been submitted to the government since 2016. According to him, the plan to start the process of dismantling next year has been submitted to the Special Unit for Upstream Oil and Gas Business (SKK Migas).

"For cutting costs is better. If it is not needed, we are decommissioning, no longer needing it, "he said.

Badak NGL party has decided from three train that is not used, only one unit dismantled. The reason, two other refineries in case of additional supply of gas from new projects that can supply Bontang Refinery. Currently, Bontang refinery obtains gas supply from Mahakam Block (Total E & P Indonesie), East Kalimantan Block (Chevron Indonesia), and Sanga-Sanga Block (VICO).

Gas supply from Bangka Field (Chevron), which is part of the Indonesian Deepwater Development (IDD) project, has started since mid-2016.

Then, in mid-2017, another gas supply came from the Jangkrik Handicraft, Muara Bakau Block operated by Eni Muara Bakau BV "It is feared that in the future there will be gas production from other oil and gas fields that enter again," he said.

IN INDONESIA

Satu Train LNG Bontang Dibongkar

PT Badak NGL, pengelola Kilang LNG Bontang, akan membongkar satu unit fasilitas pengolahan gas (train) pada tahun depan karena pasokan gas alam turun.  Badak NGL memiliki delapan train. Penutupan satu fasilitas pengolahan gas itu untuk menghemat biaya operasi dan perawatan.

Presiden Direktur PT Badak NGL Didik Sasongko mengatakan bahwa saat ini produksi kilang gas alam cair (liquefied natural gas/LNG tersebut cenderung stabil. Produksi LNG dari Kilang Bontang pada 2016 sekitar 172 kargo. Namun, sejak 3 tahun belakangan pihaknya memang hanya menggunakan empat unit kilang dengan satu unit sebagai cadangan. 

Sementara itu, tiga unit kilang lainnya tidak digunakan karena pasokan gas alam ke kilang tersebut turun. Saat ini, saham Badak NGL dipegang oleh PT Pertamina 55%, Vico Indonesia 20%, Total E&P Indonesie 10 %, dan Japan Indonesia LNG Company (JILCO) 15 %.

Proses pembongkaran satu unit dari tiga unit kilang yang tidak terpakai akan dimulai pada tahun depan. Pasalnya, Badak NGL perlu mengeluarkan biaya untuk melakukan perawatan kendati unit tersebut tidak terpakai.

“Secara administratif sekarang belum dimulai. Pada 2018 baru kita mulai pembongkaran satu kilang ,” ujarnya, Senin (16/ 10). 

Rencana pembongkaran itu telah disampaikan kepada pemerintah sejak 2016. Menurutnya, rencana untuk memulai proses pembongkaran pada tahun depan telah disampaikan kepada Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas).

“Untuk cutting cost [memangkas biaya] lebih baik. Kalau tidak diperlukan, kita decommissioning [Bongkar] saja, tidak usah dipelihara lagi,” katanya.

Pihak Badak NGL telah memutuskan dari tiga train yang tidak digunakan, hanya satu unit yang dibongkar. Alasannya, dua kilang lainnya untuk berjaga-jaga bila terdapat tambahan pasokan gas dari proyek-proyek baru yang bisa menyuplai Kilang Bontang. Saat ini, Kilang Bontang mendapatkan pasokan gas dari Blok Mahakam (Total E&P Indonesie), Blok East Kalimantan (Chevron Indonesia), dan Blok Sanga-Sanga (VICO).

Pasokan gas dari Lapangan Bangka (Chevron) yang menjadi bagian dari proyek laut dalam (Indonesian Deepwater Development/IDD) sudah dimulai sejak pertengahan 2016.

Kemudian, pada medio 2017, pasokan gas lainnya masuk dari Iapangan Jangkrik, Blok Muara Bakau yang dioperasikan oleh Eni Muara Bakau BV “Takutnya ke depan ada produksi gas dari lapangan migas lainnya yang masuk lagi,” katanya. 

Bisnis Indonesia, Page-30, Wednesday, October 18,  2017

After Margin, Gas Market Turns Regulated

The government will divide the cluster in gas trading system, which is to apply one gas trading company to control one particular area in marketing gas to consumers.

Currently, all gas traders can work on the same area so that there is often overlap in the construction of gas pipeline infrastructure. Section Head of Implementation of Oil and Gas Infrastructure Development, Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources Agung Kuswardono said that the government will issue a new regulation to divide gas traders who do business based on certain network areas.

In every gas distribution area there will be only one gas trader in the location. Agung explains, there will only be one gas business entity that does business in a region. Thus, he mentioned there would be no overlapping facilities in the designated areas.

"So the area of ​​gas distribution network and the area of ​​tetentu network there is only one business entity that beriaga in that region," he said in the Gas Discussion for Industry at the Ministry of Industry, Tuesday (17/10).

In addition, the government will release four new regulations on natural gas. First, the Presidential Regulation on the Natural Gas Network for Households. Second, revision of Minister of Energy and Mineral Resources Regulation no. 19/2009 on Natural Gas Business Activities through Pipes which shall regulate the distribution of commercial territories of gas commercial entities.

Thirdly, the Regulation of the Minister of Energy and Mineral Resources on Downstream Gas Sales Price, which limits the commercial trade margin to a maximum of 7%. Fourth, Minister of Energy and Mineral Resources Regulation on Liquefied Natural Gas (LNG) Procedures.

Meanwhile, industrial users of gas users are waiting for the issuance of Regulation of the Minister of Energy and Mineral Resources which regulates the margin of gas trading system. The regulation is currently being discussed in the Coordinating Ministry for Kemantiman Affairs.

Director of Upstream Chemical Industry Ministry of Industry Muhammad Khayam said that the beleid will regulate the cost of delivering gas or toll fee. Through the beleid, the profits of the gas management company will be limited so that the price charged to the industrial users is not too high.

"Now it is still a draft of Minister of Energy and Mineral Resources Regulation. Hopefully, this rule can be faster so there is no delay the decline in gas prices, "he said.

DOWN AGAIN

Khayam said, with the regulation, the price of gas for industry is estimated to drop about US $ 0.5-US $ 1 per MMBtu. Although the decline in gas prices has not been as big as industry expectations, Khayam says it is the first step towards further decline.

Previously, the Ministry of Industry recommended five industrial sectors consisting of 86 companies to get priority for the reduction of gas prices, namely fertilizer, petrochemical, steel, glass and ceramics industries. Based on Regulation of Minister of Energy and Mineral Resources No. 40/2016 on Natural Gas Prices for Certain Industries, of the 86 companies, only eight companies from three sectors have enjoyed the decline in gas prices, from the fertilizer, petrochemical and steel sectors.

The companies are PT Kaltim Parna Industri, PT Kaltim Methanol Industri, PT Pupuk Kalimaman Timur, PT Pupuk Kujang Cikampek, PT Pupuk Sriwidjaja Palembang, PT Pupuk lskandar Muda, PT Petrokimia Gresik and PT Krakatau Steel Tbk.

"The rest, of which 78 companies are waiting for the ESDM Ministerial Regulation," he said.

Furthermore, Khayam said the decline in gas prices for the industry is highly anticipated in order to increase competitiveness and interest in domestic companies' expansion. In fact, the contribution and investment side should be encouraged to offset the consumption in contributing gross domestic product (GDP) and to achieve the investment growth target in the manufacturing sector which has been set in the National Industrial Development Master Plan (RIPIN) of 7% -8%.

In addition, the decline in industrial gas prices can lead to an increase in industrial revenues that ultimately also increase state revenues from taxes.

"Not to mention if the company exports it later there is foreign exchange, so it is covered in the upstream decline," said Khayam.

Chairman of the Forum for Industrial Gas Users (FIPGB) Achmad Safiun said that the competitiveness of local industries decreased compared with other Southeast Asian countries due to uncompetitive gas prices so that national product prices are higher.

According to him, the national product has a strong potential to dominate the Southeast Asian market if the price is more competitive. This potential can be seen from the ability of local producers in producing quality products with more volume.

IN INDONESIA

Setelah Margin, Giliran Pasar Gas Diatur

Pemerintah akan membagi klaster dalam tata niaga gas, yaitu menerapkan satu badan usaha niaga gas untuk menguasai satu wilayah tertentu dalam memasarkan gas ke konsumen.

Saat ini, semua pelaku usaha (trader) gas bisa menggarap wilayah yang sama sehingga sering terjadi tumpang tindih dalam pembangunan infrastruktur pipa gas. Kepala Seksi Pelaksanaan Pembangunan Infrastruktur Minyak dan Gas Bumi, Ditjen Migas, Kementerian ESDM Agung Kuswardono mengatakan bahwa pemerintah akan mengeluarkan regulasi baru untuk membagi trader gas yang berbisnis berdasarkan wilayah jaringan tertentu.

Dalam setiap wilayah distribusi gas hanya akan ada satu trader gas di Iokasi tersebut. Agung menjelaskan, hanya akan ada satu badan usaha niaga gas yang berbisnis di suatu wilayah. Dengan demikian, dia menyebut tidak akan ada tumpang tindih fasilitas di wilayah yang telah ditentukan.

“Jadi wilayah jaringan distribusi gas dan wilayah jaringan tetentu hanya ada satu badan usaha yang berniaga di wilayah itu,” ujarnya dalam Diskusi Gas untuk Industri di Kementerian Perindustrian, Selasa (17/10).

Selain itu, pemerintah bakal merilis empat regulasi baru soal gas bumi. Pertama, Peraturan Presiden tentang Jaringan Gas Bumi untuk Rumah Tangga. Kedua, revisi Peraturan Menteri ESDM No. 19/2009 tentang Kegiatan Usaha Gas Bumi melalui Pipa yang akan mengatur tentang pembagian wilayah niaga para badan usaha niaga gas.

Ketiga, Peraturan Menteri ESDM tentang Harga Jual Gas Bumi Hilir, yang membatasi margin niaga gas maksimal 7%. Keempat, Peraturan Menteri ESDM tentang Tata Cara Impor Gas Alam Cair (liquefied natural gas/LNG).

Sementara itu, pelaku industri pengguna gas sedang menanti penerbitan Peraturan Menteri ESDM yang mengatur margin tata niaga gas. Regulasi tersebut saat ini masih dibahas di Kementerian Koordinator Bidang Kemantiman.

Direktur Industri Kimia Hulu Kementerian Perindustrian Muhammad Khayam mengatakan bahwa beleid tersebut nantinya akan mengatur biaya penghantaran gas atau toll fee. Melalui beleid itu, keuntungan perusahaan pengelola gas akan dibatasi sehingga harga yang dikenakan kepada pengguna industri tidak terlalu tinggi.

“Sekarang masih berupa draf Peraturan Menteri ESDM. Harapannya, peraturan ini bisa lebih cepat supaya tidak ada penundaan penurunan harga gas,” ujarnya. 

TURUN LAGI

Khayam menuturkan, dengan adanya peraturan tersebut, harga gas untuk industri diperkirakan bisa turun sekitar US$ 0,5-US$ 1 per MMBtu. Walaupun penurunan harga gas belum sebesar harapan industri, Khayam menyatakan bahwa hal ini merupakan langkah awal untuk menuju penurunan selanjutnya.

Sebelumnya, Kementerian Perindustrian telah merekomendasikan sebanyak lima sektor industri yang terdiri dari 86 perusahaan untuk mendapat prioritas penurunan harga gas, yaitu industri pupuk, petrokimia, baja, kaca, dan keramik. Berdasarkan Peraturan Menteri ESDM No. 40/2016 tentang Harga Gas Bumi untuk Industri Tertentu, dari 86 perusahaan tersebut, hanya delapan perusahaan dari tiga sektor yang telah menikmati penurunan harga gas, yaitu dari sektor pupuk, petrokimia, dan baja.

Perusahaan-perusahaan tersebut adalah PT Kaltim Parna Industri, PT Kaltim Methanol Industri, PT Pupuk Kalimaman Timur, PT Pupuk Kujang Cikampek, PT Pupuk Sriwidjaja Palembang, PT Pupuk lskandar Muda, PT Petrokimia Gresik, dan PT Krakatau Steel Tbk.

“Sisanya, yang 78 perusahaan menunggu Peraturan Menteri ESDM itu,” katanya. 

Lebih lanjut, Khayam mengatakan penurunan harga gas untuk industri sangat dinanti supaya daya saing dan minat ekspansi perusahaan dalam negeri tumbuh. Padahal, kontribusi dan sisi investasi perlu didorong untuk mengimbangi konsumsi dalam menyumbang produk domestik bruto (PDB) dan untuk mencapai target pertumbuhan investasi di sektor industri pengolahan yang telah ditetapkan dalam Rencana Induk Pembangunan Industri Nasional (RIPIN) sebesar 7%-8%.

Selain itu, penurunan harga gas industri dapat mendorong peningkatan pendapatan industri yang pada akhirnya juga memperbesar pendapatan negara dari pajak.

“Belum lagi kalau perusahaan itu ekspor nanti ada devisa, sehingga tertutupi penurunan di hulu itu,” ujar Khayam.

Ketua Forum Industri Pengguna Gas Bumi (FIPGB) Achmad Safiun mengatakan bahwa daya saing industri lokal menurun dibandingkan dengan negara Asia Tenggara lain karena harga gas yang tidak kompetitif sehingga harga produk nasional lebih tinggi. 

Menurutnya, produk nasional memiliki potensi yang kuat untuk merajai pasar Asia Tenggara apabila harganya lebih kompetitif. Potensi ini dapat dilihat dari kemampuan produsen lokal dalam menghasilkan produk berkualitas dengan volume lebih banyak. 

Bisnis Indonesia, Page-30, Wednesday, October 18,  2017

Pacific Oil & Gas Interested in Upstream Oil and Gas and Power Plant Investment in Indonesia

Independent energy company Pacific Oil & Gas (PO & G) is exploring to add new investment in the energy sector in Indonesia, in particular, upstream oil and gas and electricity sector. PO & G is working with several strategic partners with more than 35 years of experience developing world-class energy projects abroad.

"Initially, our business started in Indonesia, where so far we have invested in three oil and gas blocks in Sumatra", said President Director of PO & G Indonesia Kusnan Rahmin in a written statement in Jakarta on Monday (16/10).

Kusnan said PO & G's main goal is to work with PT Pertamina to develop new oil and gas blocks, as well as build and operate power generation projects in order to help the government meet growing demand for energy.

Overseas, PO & G has proven to have built and operated Xiamen's 780 MW Combined Cycle Gas Turbine (CCGT) power plant in Fujian, China. Xiamen PLTGU is one hundred percent owned by PO & G. It is widely known that Gas Power Plant (PLTG) is more efficient and more environmentally friendly compared to Steam Power Plant (PLTU) which uses coal as its primary energy.

PLTG has proven able to reduce greenhouse effect and improve air quality when compared with PLTU. The government has launched a program to accelerate the construction of new power plants with a capacity of 35 GW until 2019. Of the 35 GW, about 7 GW of them is Gas Power Plant.

"Therefore, PO & G is very ready to help the government to reach the development target, especially the new units of PLTG, because we mastered the technology and experienced for it", explained Kusnan.

PO & G's main assets are currently in Indonesia and China. Meanwhile, the construction of one LNG Receiving & Terminal unit is still underway in Canada. Currently PO & G Indonesia is partnered with Pertamina, where PO & G controls 25% non-operator interest in Jambi Merang Block, South Sumatra. The Jambi Merang block produces 120 million BTU and 6,000 BOPD of gas. PO & G also has 55 percent interest in Kisaran Block in North Sumatra.

In September 2015, SKK Migas and Minister of Energy and Mineral Resources have approved the first POD of the development of the oil trench field, Kisaran block. Still in North Sumatra, PO & G also holds 55 percent of the Non Conventional Oil and Gas Block (MNK) Range interest.

IN INDONESIA

Pacific Oil & Gas Minati Investasi Hulu Migas dan Pemlbangkit di Indonesia

Perusahaan energi independen Pacific Oil & Gas (PO&G) sedang menjajaki untuk menambah investasi baru di sektor energi di Indonesia, khususnya, sektor industri hulu migas dan ketenagalistrikan. PO&G bekerja sama dengan beberapa partner strategis telah berpengalaman lebih dari 35 tahun mengembangkan proyek-proyek energi kelas dunia di mancanegara.

“Awalnya, bisnis kami bermula di Indonesia, di mana sejauh ini kami telah berinvestasi di tiga Blok Migas di Sumatera”, kata Presiden Direktur PO&G Indonesia Kusnan Rahmin dalam keterangan tertulis di Jakarta, Senin (16/10).

Kusnan menuturkan tujuan utama PO&G adalah menjalin kerja sama dengan PT Pertamina untuk mengembangkan blok-blok migas baru, dan juga membangun dan mengoperasikan proyek-proyek pembangkit listrik dalam rangka membantu pemerintah memenuhi pertumbuhan permintaan energi yang terus meningkat.

Di luar negeri, PO&G terbukti telah berhasil membangun dan mengoperasikan pembangkit listrik Combined Cycle Gas Turbine (CCGT) Xiamen, 780 MW di Fujian, China. PLTGU Xiamen ini seratus persen milik PO&G. Secara luas telah diketahui bahwa Pembangkit Listrik Tenaga Gas (PLTG) lebih efisien dan lebih ramah lingkungan dibandingkan dengan Pembangkit Listrik Tenaga Uap (PLTU) yang menggunakan batu bara sebagai energi primernya. 

PLTG telah terbukti mampu mengurangi efek rumah kaca dan meningkatkan kualitas udara bila dibandingkan dengan PLTU. Pemerintah telah mencanangkan program percepatan pembangunan pembangkit-pembangkit listrik baru berkapasitas 35 GW hingga tahun 2019. Dari 35 GW tersebut, sekitar 7 GW diantaranya adalah Pembangkit Listrik Tenaga Gas. 

“Karena itu, PO&G sangat siap membantu pemerintah mencapai target pembangunan tersebut, terutama unit-unit baru PLTG-nya, sebab kami menguasai teknologi dan berpengalaman untuk itu”, terang Kusnan.

Saat ini aset-aset utama PO&G berada di Indonesia dan China. Sementara pembangunan satu unit Receiving & Terminal LNG masih berlangsung di Kanada. Saat ini PO&G Indonesia berpartner dengan Pertamina, di mana PO&G menguasai 25 % non-operator interest di Blok Jambi Merang, Sumatera Selatan. Blok Jambi Merang menghasilkan gas sebesar 120 juta BTU dan 6.000 BOPD. PO&G juga memiliki 55 persen interest Blok Kisaran di Sumatera Utara. 

Bulan September 2015 SKK Migas dan Menteri ESDM telah menyetujui POD Pertama pengembangan lapangan Parit Minyak, Blok Kisaran. Masih di Sumatera Utara, PO&G juga memegang 55 persen interest Blok Migas Non Konvensional (MNK) Kisaran.

Investor Daily, Page-10, Tuesday, October 17, 2017

Cheap Gas Policy Constrained Market Mechanism

The decline in industrial gas prices from US $ 8-9 per mmbtu to US $ 6 per mmbtu is constrained by the domestic gas market mechanism. Currently, the price of gas in each field is different, so the price of industrial gas can not be equated in all regions. Therefore, the government must establish a certain mechanism to obtain affordable gas prices for the industry.

One way to take over domestic gas trade from the private sector. After that, the government sets the average price of industrial gas, then distributes it to the company.

Executive Director of ReforMiner Institute Komaidi Notonegoro said, so far, the government only looks from a macro perspective and from a user's industry perspective. In fact, it should be seen again the price in the upstream industry, because each gas field has a different price.

Komaidi said that in gas fields that have prices below US $ 6 per mmbtu, gas prices can be in accordance with the wishes of the government. However, in reality the price is more than that, it is difficult to get the price the government wants. To that end, Komaidi said that the government can not force the upstream industry to lower the gas price to the level of US $ 6 per mmbtu.

"Unless the government wants to create mechanisms such as the Bulog Logistics Agency, so the government takes over all gas, then the price is averaged and just sold to consumers. This scheme can be done, because the government is selling. But, if still submitted to the market mechanism, it can not be done like that, because the price of gas in each field is different, "said Komaidi.

In addition, production costs in each region vary. In principle, gas prices will be more expensive in areas where infrastructure is minimal. Meanwhile, which is required to build infrastructure is upstream industry, which is then charged at the selling price.

"The government should be deeper to see it. So, if using market mechanism, can not be equated with industrial gas price. There is supervision allowed, but each field can not be equated, "said Komaidi.

He considered, Presidential Regulation No. 40/2016 on the Pricing of Natural Gas is made based on information that is not intact. As a result, the regulation is difficult to implement. In fact, even in Java Island, it is difficult to realize the maximum industrial gas price of US $ 6 per mmbtu. Moreover, in the eastern part of Indonesia. In fact, most of the gas reserves are in the region.

Industrial Collapsing

Previously, as many as 45 manufacturing factories closed due to high gas prices. Of that total, 36 are rubber glove factories, eight ceramics factories, and one sheet glass factory. The high price of gas has resulted in the competitiveness of national industry down. As a result, local industries are unable to compete with imported goods in the domestic market. This incident continues, so the industry cuts production or even closes the factory, for those who can not bear the burden anymore.

Therefore, the gas user industry asked the government to immediately lower the price of industrial gas from an average of US $ 8-9 per mmbtu to US $ 6 per mmbtu. Especially for the petrochemical industry, the price of gas for raw materials should ideally reach US $ 3 per mmbtu. This decline is not negotiable, given that many companies are closing the factory.

Moreover, this is regulated in Economic Package II released in October 2015. Currently, the decline in gas prices is only enjoyed by three industrial sectors, namely petrochemical, steel, and fertilizer.

This incentive also can only be obtained by state-owned companies. The Ministry of Industry (Kemenperin) pushed two other industrial sub-sectors to get this incentive, namely ceramics and glass. Chairman of the Association of Glass Glasses and Safety (AKLP) Yustinus Gunawan said, national glass industry can not compete if the price of gas is still high. Glass industry players buy gas at a price of US $ 8-9 per mmbtu, while gas prices in other Asean countries reach US $ 5 per mmbtu.

IN INDONESIA

Kebijakan Gas Murah Terkendala Mekanisme Pasar

Penurunan harga gas industri dari level US$ 8-9 per mmbtu menjadi US$ 6 per mmbtu terkendala mekanisme pasar gas domestik. Saat ini, harga gas di setiap lapangan berbeda-beda, sehingga harga gas industri tidak dapat disamakan di semua daerah. Oleh sebab itu, pemerintah harus menetapkan mekanisme tertentu untuk mendapatkan harga gas yang terjangkau bagi industri. 

Salah satu caranya dengan mengambil alih perdagangan gas dalam negeri dari swasta. Setelah itu, pemerintah menetapkan harga rata-rata gas industri, lalu mendistribusikan ke perusahaan.

Direktur Eksekutif ReforMiner Institute Komaidi Notonegoro mengatakan, selama ini, pemerintah hanya melihat dari perspektif makro dan dari pandangan industri pengguna. Padahal, harus dilihat kembali harga di industri hulu, karena setiap lapangan gas memiliki harga yang berbeda.

Komaidi mengatakan, di lapangan gas yang memiliki harga di bawah US$ 6 per mmbtu, harga gas bisa sesuai keinginan pemerintah. Tetapi, kenyataannya harganya lebih dari itu, sulit mendapatkan harga yang diinginkan pemerintah. Untuk itu, Komaidi menilai pemerintah tidak dapat memaksakan industri hulu menurunkan harga gas hingga level US$ 6 per mmbtu.

“Kecuali, kalau pemerintah mau membuat mekanisme seperti Badan Urusan Logistik Bulog, sehingga pemerintah sebagai take over seluruh gas, kemudian harganya dirata-rata dan baru dijual ke konsumen. Skema ini bisa dilakukan, karena pemerintah yang jual. Tapi, kalau masih diserahkan ke mekanisme pasar, tidak bisa dilakukan seperti itu, karena harga gas di tiap lapangan berbeda-beda,” kata Komaidi. 

Selain itu, biaya produksi di setiap daerah berbeda-beda. Prinsipnya, harga gas akan lebih mahal di daerah yang infrastrukturnya minim. Sementara itu, yang diharuskan membangun infrastruktur adalah industri hulu, yang kemudian dibebankan di harga jual.

“Pemerintah harus lebih dalam untuk melihatnya. Jadi, jika menggunakan mekanisme pasar, tidak bisa disamakan harga gas industri. Ada pengawasan boleh, tapi tiap lapangan tidak bisa disamakan,” ujar Komaidi.

Dia menilai, Peraturan Presiden Nomor 40/2016 tentang Penetapan Harga Gas Bumi dibuat berdasarkan informasi yang tidak utuh. Alhasil, regulasi itu sulit untuk diimplementasikan. Bahkan, di Pulau Jawa sekalipun, sulit mewujudkan harga gas industri maksimal US$ 6 per mmbtu. Apalagi, di wilayah Indonesia bagian timur. Padahal, sebagian besar cadangan gas berada di wilayah tersebut.

Industri Kolaps

Sebelumnya, sebanyak 45 pabrik industri manufaktur tutup akibat mahalnya harga gas. Dari jumlah itu, sebanyak 36 merupakan pabrik sarung tangan karet, delapan pabrik keramik, dan satu pabrik kaca lembaran. Tingginya harga gas telah mengakibatkan daya saing industri nasional turun. Akibatnya, industri lokal kalah bersaing dengan barang impor di pasar domestik. Kejadian ini terus berlangsung, sehingga industri memangkas produksi atau bahkan menutup pabrik, bagi yang tidak sanggup lagi memikul beban.

Oleh sebab itu, industri pengguna gas meminta pemerintah segera menurunkan harga gas industri dari rata-rata US$ 8-9 per mmbtu menjadi US$ 6 per mmbtu. Khusus industri petrokimia, harga gas untuk bahan baku idealnya mencapai US$ 3 per mmbtu. Penurunan ini sudah tidak dapat ditawar lagi, mengingat sudah banyak perusahaan yang menutup pabrik.

Apalagi, hal ini diatur dalam Paket Ekonomi II yang dirilis Oktober 2015. Saat ini, penurunan harga gas hanya dinikmati oleh tiga sektor industri, yakni petrokimia, baja, dan pupuk.

Insentif ini juga hanya bisa diperoleh perusahaan BUMN. Kementerian Perindustrian (Kemenperin) mendorong dua subsektor industri lain mendapatkan insentif ini, yakni keramik dan kaca. Chairman III Asosiasi Kaca Lembaran dan Pengaman (AKLP) Yustinus Gunawan mengatakan, industri kaca nasional tidak bisa bersaing jika harga gas masih tinggi. Para pelaku industri kaca membeli gas dengan harga mencapai US$ 8-9 per mmbtu, sedangkan harga gas di negara Asean lainnya mencapai US$ 5 per mmbtu.

Investor Daily,  Page-10, Tuesday, October 17, 2017

Indonesian Fertilizer Push the Gas Price Contract Formula Scheme

The high price of industrial gas in Indonesia (US $ 6 per mmbtu) plus gas contracts still using Take or Pay (TOP) scheme make Pupuk lndonesia difficult to compete in the fertilizer industry. Therefore, President Director of PT Pupuk Indonesia Aas Asikin Idat claimed to encourage new gas contracts in 10 fertilizer companies under the Pupuk Indonesia Group using Formula Scheme.

"We are negotiating to eliminate the TOP Scheme For new contracts, use Formula Scheme," said Aas at the office of the Ministry of SOEs, Jakarta yesterday. The TOP scheme is claimed to be burdensome to the fertilizer industry because the company has to pay to suppliers even if the gas is not used. The use of Formula Scheme is more favorable to the fertilizer industry because gas prices follow the price of fertilizers and ammonia.

IN INDONESIA

Pupuk Indonesia Dorong Skema Formula Kontrak Harga Gas

Harga gas industri di Indonesia yang dinilai masih tinggi (US$ 6 per mmbtu) ditambah kontrak gas yang masih menggunakan Skema take or pay (TOP) membuat Pupuk lndonesia sulit bersaing di industri pupuk. Karena itu, Direktur Utama PT Pupuk Indonesia Aas Asikin Idat mengaku akan mendorong kontrak-kontrak gas baru di 10 perusahaan pupuk di bawah Pupuk Indonesia Group menggunakan Skema formula.

"Kita negosiasi Untuk menghilangkan Skema TOP-nya. Untuk kontrak-kontrak baru, pakai Skema formula," ujar Aas di Kantor Kementerian BUMN Jakarta, kemarin. Skema TOP diakui memberatkan industri pupuk karena perusanaan harus membayar ke pemasok meski gas tidak digunakan. Penggunaan Skema formula, lebih menguntungkan lndustri pupuk sebab harga gas mengikuti harga pupuk dan amonia.

Media Indonesia,  Page-18, Tuesday, October 17, 2017

Indonesian Fertilizer Asks for Gas Price Decrease

PT Pupuk Indonesia asks the government to again lower the gas price for the industry, especially the fertilizer industry. Because the current gas price in Indonesia set by the government of USD 6 per MMBTU is still considered too expensive.

President Director of Indonesian Fertilizer Aas Asikin Idat said that currently the world fertilizer production has been oversupply with the production of 240 million tons. Whereas its use is only about 180 million tons. With the excess supply of fertilizers in the world, then that will mendapakan place is low cost fertilizer producers. Unfortunately, high gas prices in Indonesia make the cost of making fertilizer in the country was relatively high.

"We're talking about the world's supply of 240 million tons, while the world's consumption is only 180 million tons, so it's over supply, it's really competing, who can enter the 180 million market is good and low cost companies. , the price of gas for the manufacture of fertilizers is high, and we are the highest, "he said at the Ministry of SOEs, Jakarta.

He mentioned that gas prices obtained by fertilizer producers in other countries average about USD 1 to USD 3 per MMBTU. While in Indonesia gas price reaches USD 6 per MMBTU. Though gas covers 70% of the cost components to be issued by the company. Aas wants the gas price to drop to USD 3 as applicable in some countries in the world.

Deputy of Agro Industry and Pharmaceutical Enterprises Ministry of State-Owned Enterprises Wahyu Kuncoro added that the consumption of fertilizer factory gas owned by Pupuk Indonesia is very wasteful. Though the new plant usually consume about 24 MMBTU per ton.

"Well, the average gas consumption is quite wasteful if not the range of 29-30 MMBTU per tonne, the new plant at an average of 24 MMBTU, so wasteful gas consumption and high gas prices," he said.

In addition, gas distribution is mostly using take or pay patterns. Although the gas is not used, the company still has to pay.

"The gas supply model is mostly take or pay." The desire for CnC, my friends have made a study if the gas price remains USD 6 per MMBTU, whereas the economy is USD 4 per MMBTU. Gas is take or pay, so used or not to be paid "he said.

IN INDONESIA

Pupuk Indonesia Minta Penurunan Harga Gas

PT Pupuk Indonesia meminta pemerintah kembali menurunkan harga gas untuk industri, khususnya industri pupuk. Pasalnya, saat ini harga gas di Indonesia yang ditetapkan pemerintah sebesar USD 6 per MMBTU masih dianggap terlalu mahal.

Direktur Utama Pupuk Indonesia Aas Asikin Idat mengungkapkan, saat ini produksi pupuk dunia sudah oversupply dengan jumIah produksi 240 juta ton. Padahal pemakaiannya hanya sekitar 180 juta ton. Dengan berlebihnya pasokan pupuk didunia, maka yang akan mendapakan tempat adalah produsen-produsen pupuk yang ongkosnya rendah.  Sayangnya, harga gas di Indonesia yang tinggi membuat ongkos pembuatan pupuk di Tanah Air pun relatif tinggi.

"Kita bicara suplai dunia saat ini 240 juta ton, sedangkan pemakaian dunia hanya 180 juta ton. Jadi sudah over supply. Ini betul-betuI sangat bertanding, siapa yang bisa masuk ke pasar 180 juta adalah yang perusahaan baik dan biayanya rendah. PermasaIahan di Indonesia, harga gas untuk pembuatan pupuk itu reIatif tinggi. Bahkan kita tertinggi,” katanya di Kementerian BUMN, Jakarta.

Dia menyebutkan, harga gas yang diperoleh produsen pupuk di negara lain rata-rata sekitar USD 1 hingga USD 3 per MMBTU. Sedangkan di Indonesia harga gas mencapai USD 6 per MMBTU. Padahal gas meliputi 70% dari komponen biaya yang harus dikeluarkan perseroan. Aas menginginkan agar harga gas bisa turun hingga USD 3 seperti yang berlaku di beberapa negara di dunia.

Deputi Bidang Usaha Industri Agro dan Farmasi Kementerian BUMN Wahyu Kuncoro menambahkan, konsumsi gas pabrik pupuk yang dimiliki Pupuk Indonesia sangat boros. Padahal pabrik baru biasanya konsumsinya sekitar 24 MMBTU per ton. 

"Nah, rata-rata konsumsi gas cukup boros kalau tidak salah kisaran 29-30 MMBTU per ton. Pabrik baru itu di rata-rata 24 MMBTU. Jadi konsumsi gas yang boros dan harga gas tinggi," ungkapnya.

Selain itu, poIa penyaluran gas pun sebagian besar menggunakan pola take or pay. Meskipun gas tersebut tidak digunakan perseroan tetap harus membayar.

"Model suplai gas itu sebagian besar take or pay. Keinginan untuk CnC, teman-teman sudah buat kajian kalau harga gas tetap USD 6 per MMBTU, padahal keekonomiannya USD 4 per MMBTU. Gas itu take or pay, jadi dipakai atau tidak harus dibayar" katanya.

Koran Sindo,  Page-20, Tuesday, October 17, 2017

Pacific Oil and Gas Investment in Electricity Business

Independent energy company Pacific Oil & Gas is exploring new investment in the energy sector in Indonesia. The addition is particularly in the upstream oil and gas and electricity industry sectors.

PO & G Indonesia President Director Kusnan Rahmin said PO & G's main goal is to work with PT Pertamina to develop new oil and gas blocks. Also build and operate power plant projects.

The ultimate goal, to help the government meet the growing demand for energy.

"Initially, our business started in Indonesia and so far we have invested in three oil and gas blocks in Sumatara", he said.

PO & G controls 25% non-operator interest in Jambi Merang Block, South Sumatra, has 55% interest in Kisaran Block in North Sumatra and owns 55% of Non-Conventional Oil Range Blocks. Overseas, PO & G builds and operates Xiamen's Combined Cycle Gas Turbine power plant up to 780 MW in Fujian, China. This Xiamen PLTGU is 100% owned by PO & G.

As we know, the government launched the 35,000 Megavvatt (MW) development acceleration program until 2019. Of the 35,000 MW or 35 GW, about 7 GW of them are Gas Power.

"Therefore, PO & G is very ready to help the government achieve the development targets, especially new units of PLTG, because we mastered the technology and experienced for it," he explained.

IN INDONESIA

Pacific Oil and Gas 5 Investasi di Bisnis Ketenagalistrikan

Perusahaan energi independen Pacific Oil & Gas sedang menjajaki penambahan investasi baru di sektor energi di Indonesia. Penambahan itu khususnya di sektor industri hulu migas dan ketenagalistrikan.

Presiden Direktur PO&G Indonesia Kusnan Rahmin mengatakan, tujuan utama PO&G adalah menjalin kerjasama dengan PT Pertamina untuk mengembangkan blok-blok migas baru. Juga membangun serta mengoperasikan proyek-proyek pembangkit listrik.

Tujuan akhirnya, membantu pemerintah memenuhi pertumbuhan permintaan energi yang terus meningkat. 

"Awalnya, bisnis kami bermula di Indonesia dan sejauh ini kami telah berinvestasi di tiga blok migas di Sumatara”, ujarnya.

PO&G menguasai 25% non-operator interest di Blok Jambi Merang, Sumatra Selatan, memiliki 55% interest Blok Kisaran di Sumatra Utara dan memiliki 55% interest Blok Migas Non Konvensional Kisaran. Di luar negeri, PO&G membangun dan mengoperasikan pembangkit listrik Combined Cycle Gas Turbine Xiamen hingga 780 MW di Fujian, China. PLTGU Xiamen ini 100% milik PO&G.

Seperti yang kita tahu, pemerintah mencanangkan program percepatan pembangunan 35.000 Megavvatt (MW) hingga tahun 2019. Dari 35.000 MW atau 35 GW tersebut, sekitar 7 GW di antaranya adalah Pembangkit Listrik Tenaga Gas. 

“Karena itu, PO&G sangat siap membantu pemerintah mencapai target pembangunan tersebut, terutama unit-unit baru PLTG, sebab kami menguasai teknologi dan berpengalaman untuk itu," terangnya.

Kontan, Page-14, Tuesday, October 17, 2017