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Masela gas buyers to enjoy incentives from govt
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A technician of state-owned gas company PGN inspects gas pipelines at the company’s Pasar IX metering and regulating station (MRS) in Medan, North Sumatra, on Tuesday. PGN said earlier this year that it was aiming to develop an additional 1,680 kilometers of pipeline by the end of 2019 to deliver gas to more areas of the archipelago. (Antara/Irsan Mulyadi)
T
he government is looking to roll out several fiscal incentives, including a tax holiday, for the buyers of gas to be produced at the Masela block in the Arafura Sea at a fixed price of US$5.86 per million British thermal unit (mmbtu).
Japan-based oil and gas firm Inpex Corp., which holds 65 percent majority stake in the block, came with the fixed price proposal after conducting a preliminary study and submitted it as a recommendation to the Energy and Mineral Resources Ministry.
The Industry Ministry’s director of upstream chemical industry, Muhammad Khayam, said Monday the government in addition to using the price proposal would also provide fiscal incentives, such as tax holiday.
“We will provide some incentives so that it will be more economical for them [buyers],” he said after attending a meeting on the Masela block with stakeholders at the Office of the Coordinating Maritime Affairs Minister.
Khayam said a team comprising officials from various ministries, including the Industry Ministry, Energy and Mineral Resources Ministry and Office of the Coordinating Economic Minister, planned to meet up on July 17 to further discuss the price of Masela gas.
Read also: PLN set to absorb Masela gas
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Masela gas buyers to enjoy incentives from govt
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