Indonesian Political, Business & Finance News

Jabar Regional-Owned Enterprise Expected to Optimise Gas Allocation for CNG-LNG

| Source: ANTARA_ID Translated from Indonesian | Energy
Jabar Regional-Owned Enterprise Expected to Optimise Gas Allocation for CNG-LNG
Image: ANTARA_ID

Jakarta (ANTARA) - Satya Hangga Yudha Widya Putra, an expert advisor to the Minister of Energy and Mineral Resources, hopes that the regional-owned enterprise PT Migas Utama Jabar (MUJ) will optimise gas allocations for the development of compressed natural gas (CNG) and liquefied natural gas (LNG) infrastructure in West Java (Jabar).

“Our hope is that MUJ, as the designated energy holding in West Java, can optimise gas allocations for the development of CNG and LNG infrastructure to strengthen national energy resilience,” he said in a statement in Jakarta on Thursday.

According to him, through coordination, his side is pushing for an increase in oil and gas lifting by utilising more accommodative fiscal policies, where every incentive provided by the government must be concretely converted into additional drilling activities.

“This synergy is crucial so that operational cost savings can have a positive domino effect on state revenues and regional energy independence,” said Hangga while facilitating a meeting between SKK Migas and MUJ in Jakarta on Wednesday (29/4).

The meeting was attended by Desti Melanti, Deputy for Finance & Commercialisation of SKK Migas, and Ghema Akbar, President Director of MUJ.

“The main focus of this meeting is to optimise domestic gas allocations to support the construction of CNG and LNG infrastructure in order to maintain national energy resilience,” Hangga stated.

Meanwhile, Desti underlined the importance of accountability in utilising fiscal policies, especially during the transition period of contract schemes from gross split to cost recovery.

Ghema said MUJ is promoting West Java’s energy independence through distribution efficiency, CNG and mini LNG innovations, as well as synergies in meeting gas needs for households and industries.

“Our aspiration is to shorten the gas distribution chain so that businesses in West Java can obtain more affordable prices, while realising inclusive energy management through the development of CNG and mini LNG business units,” he said.

According to him, MUJ’s development focus is not only on commercial aspects but also aligned with the central government’s priority programmes in providing gas supplies for household networks and strategic industries.

“We are committed to making West Java a model region that is independent in managing its regional energy potential,” he added.

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