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Gas Regulation - 2009
Describe the domestic natural gas sector, including the natural gas production, liquefied natural gas (LNG) storage, pipeline transportation, distribution, commodity sales and trading segments.
Law22 of 2001 regarding oil and natural gas (Law 22) and its implementing regulations (Government Regulation No. 35 of 2004 as amended by Government Regulation No. 34 of 2005 regarding upstream oil and gas business activities (GR35) and Government Regulation No. 36 of 2004 regarding downstream oil and gas business activities (GR36), substantially changed the existing business structure for oil and gas activities, especially downstream gas activities. While Law 22 outlines the government’s objectives and policies for the natural gas sector, details of the new regulatory scheme will be established by a series of government regulations to be issued under Law 22. So far, six of these regulations have been enacted. GR35 and GR36 aim to regulate details of upstream and downstream oil and gas business activities in Indonesia, while the remaining three government regulations deal with the establishment of government agencies to supervise the upstream and downstream oil and gas sectors – BP Migas and BPH Migas, respectively – and the establishment of PT Pertamina (Persero).
First published in Getting the Deal Through – Gas Regulation 2009. www.gettingthedealthrough.com
