Indonesia To Lower Lng Price For Industrial Users To US$13 Per Mmbtu

By Nik Nurfaqih Nik Wil

JAKARTA, June 29 (NNN) -- Indonesia will lower the price of liquefied natural gas (LNG) supplied to industrial users to US$13 (US$1=RM4.08) per million British thermal units (MMBTU), from around US$20 to US$23 per MMBTU currently paid by industries.

Energy and Mineral Resources Minister Bahlil Lahadalia said the decision was reached during a government coordination meeting in response to geopolitical developments affecting the national economy, particularly the gas sector.

He said the government had received representations over the past 10 days from the ceramics industry association, several other industries, and the Confederation of Indonesian Trade Unions (KSPI), before formulating measures to address the issues raised.

“We believe ensuring the sustainability of jobs is part of the government's responsibility. The industry proposed a price of around US$15-US$16 per MMBTU.  After we made our calculations and reported them to the president, it was lowered to US$13 per MMBTU,” he said at a press conference carried live on YouTube by local media on Monday.

Bahlil said LNG prices had risen to between US$20 and US$23 per MMBTU after gas production declined in western Java, leading industries in West Java, Banten, and Jakarta to rely on LNG transported from Papua, Sulawesi, Kalimantan, and other regions outside Java. He added that transporting LNG from those regions, regasifying it, and distributing it through pipelines had driven up the delivered cost of LNG supplied to industries.

He said Indonesia's gas lifting remained in line with the state budget target, meaning the country did not need to import gas.

Meanwhile, he said gas prices under the government's Certain Natural Gas Price (HGBT) scheme would remain between US$6.5 and US$7 per MMBTU, while pipeline gas supplied to industries outside the HGBT scheme would remain at US$9.6 per MMBTU.

--NNN-BERNAMA