Government to issue regulation on gas-grid

Jakarta (ANTARA News) - Energy and Natural Resources Ministrys Directorate General of Oil and Gas is drafting the Presidential Regulation on gas-grid (jargas) in the country, the planning director, Alimuddin Baso stated here on Wednesday.

"Establishing the countrys gas network blueprint was not only the program of the ministry but also the provincial governments. Hence, I hope the regulation would later improve the harmonious relations among stakeholders," Baso said in Jakarta.

The regulation, according to him, would ease some procedures, mainly in terms of requiring business licenses.

Apart from simplifying procedures, the regulation would call on the central and provincial governments to support the gas-grid project in the country.

"We hope that the forthcoming construction would no longer be obstructed by the long and exhausted procedures on getting permission," he added.

However now, the authority still maintain communication with the provincial governments and other stakeholders.

"For instance, the authority has already regulated the issue in terms of the toll fees, but if the business sector expects a zero-tariff, we should consider it. The problem will be resolved only in a non-conventional manner," Baso explained, referring to the gas management in the country.

On a separate occasion, the ministrys director general of oil and gas, I.G.N Wiratmaja, stated that the authority had recorded some areas available for the gas-grid construction.

"A major requirement for the project is that the selected areas should have an adequate gas reserve," Puja noted.

He further explained the project would be constructed by the state-owned National Gas Company (PGN) and Pertamina.

Meanwhile, the Energy Minister Ignasius Jonan revealed that some additions for domestic gas-grid were funded by 2017 state budget.

"The authority had allocated some Rp190 billion for the additional 19 thousand gas-grid projects," Jonan remarked, adding that the availability of the network and the domestic demand would be taken into a consideration.(*)

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