Natural Gas: New Regulations

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The Minister for Energy and Mineral Resources has introduced new regulations to facilitate industries’ efficient use of natural gas. The Regulations* remove the maximum gas price cap, specify the price range for natural gas, detail the manner in which prices should be calculated, and specify the price range at which users can buy from the plant gate.

The Regulations impose several additional responsibilities for natural gas users, including:

  1. permitting the commercialisation of surplus volume;
  2. the obligation to provide data for evaluation; and
  3. the obligation to implement energy conservation procedures.

*Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 91.K/MG.01/MEM/2023 regarding Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector