Fee Arrangements for Transporting Natural Gas through Pipelines

The Downstream Oil and Gas Supervisory Agency (“BPH Migas”) has issued Regulation No. 08 of 2013 on Fee Arrangements for Transporting Natural Gas Through Pipelines (“2013 Regulation”). The 2013 Regulation provides guidance on calculating the appropriate fees that can be charged for the use of pipeline networks to transporting natural gas.

A preliminary point for understanding the 2013 Regulation’s regime is that there are two types of pipelines used to transport natural gas, namely transmission pipelines and distribution pipelines.