Wednesday, May 18, 2011

Gas development remains govt focus

Rangga D Fadillah, The Jakarta Post, Jakarta | Wed, 05/18/2011 1:53 PM | Body and Soul

Commenting on Indonesia's declining oil production, Vice President Boediono has reaffirmed the government's commitment to promoting natural gas as the main energy source to fuel economic growth in the future.

"Last year I mentioned that gas was our future. That remains our basic policy. The government obviously has a strong interest in keeping this on track and will continue to closely monitor its progress," he said before the official opening of the 35th Indonesian Petroleum Association (IPA) Annual Convention and Exhibition in Jakarta on Wednesday.

The government, he continued, would continuously facilitate "gradual moves toward economic pricing for domestic gas uses" and direct negotiations between gas producers and consumers to tackle problems on pricing.

"However, we know that the key issues are more than this. The critical step is how to accelerate the development of gas infrastructure," Boediono said.

He promised that the government would speed up the completion of gas pipelines in Java and the construction of floating storage and re-gasification units (FSRU) in Sumatra and Java.

"One unit in Jakarta area is expected to be ready by as early as 2012," he said.

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