"The diversion of the gas distribution will save Rp6.71 trillion on the power subsidy per annum," Achmad Rilyadi of the House of Representatives (DPR)`s Commission VII on energy affairs, said here on Tuesday.
About 100 billion British thermal units (BBTU) of gas which was previously designed for the PLN-owned Muara Tawar PLTGU gas plant in Bekasi has been diverted to the Duri field which is managed by Chevron.
The gas supply is used to increase Chevron`s production up to 50,000 barrels per day.
The minister for energy and mineral resources has issued a ministerial decree which gives priority of gas use to increase oil and gas production.
The second priority of gas use will be given to the production of fertilizers, electricity, and industry.
The lawmaker who is intimately called Irel said the Rp6.71 trillion could be economized from electricity cost by only using 100 BBTU of gas worth Rp2.05 trillion.
He said that the assumption used was that the gas price was 6.25 dollars per million BTU with an exchange rate of Rp9,000 per US dollar.
The electricity cost using fuel oil would reach Rp8.76 trillion with the assumption price of diesel oil (high speed diesel /HSD) at Rp8,000 per liter.
"This would need additional cost or subsidy of Rp6.71 trillion because of the absence of 100 BBTUD gas supply," he said.
Irel said the value of saving on subsidy was far bigger than the income from Chevron`s crude production.
He said that the government would only gain additional income worth 300 million US dollars from Chevron`s 50,000 barrel crude production per day. (T.SYS/A/A014/A/A014)
(ANTARA)
Editor: Ella Syafputri
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