SKK Migas: Domestic gas industry supply secure, focus on economic added value

Jakarta – Although there has been a recent issue of gas shortages for the domestic industry, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) emphasised that the supply of natural gas for domestic needs is safe.

According to the lifting data released as of March 2024, 77 per cent of the total gas supply is allocated for the domestic market, while the rest is exported. This reflects the government’s focus on prioritising domestic gas utilisation.

The head of SKK Migas’s Program and Communication Division, Hudi D Suryodipuro, explained that SKK Migas adheres to existing regulations on the allocation and utilisation of natural gas when allocating domestic gas.

“Gas utilisation for domestic needs is very broad, covering various sectors ranging from households, industry, to transportation. This reflects the strategic role of gas in the energy transition,” he said in his statement on Friday, May 10.

The fertiliser and electricity industries are the largest industrial uses of domestic gas. These industries have great economic benefits, including increased production, sales, and gas absorption.

“Government support for industries related to the needs of many people, such as the fertiliser industry, has a very positive impact on increasing production, sales, taxes, and gas absorption,” added Suryodipuro.

The Government’s commitment to prioritising domestic gas utilisation is intended to create greater added value for the economy and build energy and food security.

Hudi also emphasised the importance of the involvement of all stakeholders in preparing reliable gas network infrastructure and adequate markets to support increased gas production in the future. (Hartatik)

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