Energy Ministry picks DMO option to lower industrial gas prices

14-Jan-2020 Intellasia | JakartaPost | 12:39 AM Print This Post

The Energy and Mineral Resources Ministry has chosen to pursue a combination of a domestic market obligation (DMO) and fiscal incentives to reduce industrial gas prices in the hope of fulfilling a four-year-old promise from President Joko “Jokowi” Widodo. The ministry will, among other requirements, expect oil and gas companies to prioritise selling their liquefied natural gas (LNG) to state-owned gas distributor PGN as part of efforts to bring the gas price down to $6 per million British thermal units (mmbtu) as promised by the government, from between $8 and $9 per mmbtu at present. “As long as PGN’s infrastructure runs at full capacity, it can sell at $6 per mmbtu,” said the ministry’s acting oil and gas director general Djoko Siswanto on January 8. Should PGN fail to bring gas prices down even with the higher LNG supply, then the…


Category: Indonesia, Uncategorized

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