Publications

Indonesia; domestic gas consumption has increased over the years. However, it has not met its daily contract quantity (DCQ). In 2016, the gap between the actual industrial gas consumption with its DCQ was 186 BBTUD or 10% of the total contracted volume (SKK Migas, 2016), which resulted in significant revenue loss. The lack of availability and access to gas infrastructures, either transmission or distribution pipelines is one of the causes. In addition, Commercial Gas Business Entities (CGBE) does not fully understand the Facilities Sharing Agreement (FSA) concept in the downstream gas business. Facility Sharing Agreement, a familiar concept in the upstream business, is the utilization of gas facilities which are commonly applied for gas pipelines and gas metering systems, owned by other business entities in order to distribute natural gas toward a specific delivery point. Even though FSA is legally covered by Regulation of Ministry Energy & Natural Resources No. 19/2009 previously and currently by No. 04/2018, it has not yet been widely implemented by commercial gas business entities. Refer to those regulations, as long as the utilization of the facilities has not reached its maximum capacity, the facility; owner has no reason to refuse FSA proposal. Facility Sharing Agreement agreed between business entities facilities owner has to be submitted to the Directorate General of Oil and Gas (Ditjen Migas) and Downstream Regulatory Body (BPH Migas) for approval. PT Pertamina Gas Niaga (Pertagas Niaga) has implemented FSA in many existing customers all around Indonesia since 2016, which was proven to accelerate and optimize natural gas monetization volume by 6% and generated revenue more than US$ 30 million. Facility Sharing Agreement, the win-win business concept, will increase revenue and continuous performance improvement for all parties involved and control investment activities in gas infrastructure.