Gas Transportation Agreement Indonesia

Access to oil and natural gas transmission pipelines and related infrastructure is organized by BPH Migas with reference to the transmission mast plan established by the MEMR. As a general rule, gas storage is regulated by gr 36 as a downstream activity. Gas storage activities may be carried out by the Capital Investment Coordinating Board («BKPM») c.q. DGOG, unless the gas storage activities are ancillary to the company`s main processing, transport or trading activities. An undertaking operating in the gas storage sector is required to offer a third party the sharing of installations taking into account technical and economic aspects. Facilities sharing is specifically governed by Regulation 6 of 2005 of the BPH Migas. 6.5 To what extent are oil and gas transmission pipelines integrated or linked to each other and how is cooperation between different transportation systems established and regulated? 6.4 How is access to and related infrastructure organized for oil and gas pipelines? 6.6 Describe all third party access rights with respect to the transportation of oil and natural gas and related infrastructure. For example, can the regulator or a new customer who wishes to transport oil or gas compel or require the operator/owner of an oil or gas pipeline or accompanying infrastructure to grant capacity or expand its facilities to accommodate the new customer? If so, how are the costs (including interconnection, capacity reservation or facility expansion costs) allocated? Ownership of land acquired for facilities used for downstream activities outside a cooperation contract may be held in the name of the business unit carrying out the transport or storage activity. Following the signing of three Gas Sales Agreements (GSAs) for gas sales from the West Natuna Sea Block A Production Contract (PSC) area to Batam Island in Indonesia and Singapore, the Prime Minister and his PSC co-venturers are pleased to announce the signing today in Jakarta of a Fully Designated Gas Transmission Agreement (GTA) for gas deliveries to Singapore and other gas transmission agreements. Gas supply to Batams were signed today in Jakarta. I will soon follow him. Gas prices are set taking into account the profitability of the fields, national and international gas prices and the added value of domestic use of natural gas.

The setting of gas prices for national needs must also take into account the purchasing power of domestic consumers and the support given to the Government`s programme for the supply of natural gas to transport, households and small customers. Gas transmission by pipeline is located in gr 36 and in regulation 4 of the MEMR of 2018 with regard to gas activity in downstream oil and gas activities and is controlled by BPH Migas. It can only be carried out by a business unit established in Indonesia and which has obtained a transport licence from the BKPM c.q. DGOG, unless such transport is carried out by a PSC contractor pursuing its activities upstream. . . .

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