Jakarta – The government will soon issue a new Government Regulation (PP) related to the use of natural gas for domestic needs. This regulation will authorise industrial estates to form consortiums to build gas infrastructure and manage gas needs for tenants located in the area.
Minister of Industry, Agus Gumiwang Kartasasmita, stated that the latest PP will give full license for industrial estates to manage and provide natural gas for industrial needs within their area, including through gas imports if needed.
“Industrial estates are allowed to manage natural gas for their industrial estates or for their tenants to supply and distribute natural gas within the industrial estate, including through importation,” Agus said in an official statement during the launching of PP 20 Year 2024 on industrial regionalisation, Wednesday, July 10.
To support the provision of adequate infrastructure, the government also opens opportunities for industrial estates to form consortiums, that will be responsible for infrastructure development as well as the provision of the necessary gas supply.
“We are sure and we have also studied that it is not certain that the industrial estate will invest in infrastructure because it must also be expensive, therefore we open opportunities for consortiums. So, 3-4 industrial estates can form one separate infrastructure to serve the 3-4 industrial estates,” Agus explained, adding that gas import licenses are only intended for the gas needs of tenants in the industrial estate and to produce electricity in the area.
However, Agus added that gas imports should only be done if domestic gas prices are not competitive. The new regulation also aims to encourage competition in the upstream gas sector and end monopolies. With this new PP, it is expected that industries can be more flexible in meeting their gas needs and improving their operational efficiency. (Hartatik)
