Investment Supervision of the Development of Natural-Gas Transportation Pipelines Finally Addressed

The development of infrastructure relating to natural-gas transportation pipelines (“Pipelines”) is continuing to attract huge amounts of investment in Indonesia. For example, the development of the 2,249 km long Trans-Kalimantan natural-gas pipeline has a projected cost of around IDR 30 - 35 trillion and will be executed during the course of a 30-year concession period in conjunction with the private sector.[1]

As with any such high figure investments, the Downstream Oil-and-Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas Bumi – “BPH Migas”) has introduced a relevant framework, in this case Regulation No. 15 of 2019 on the Supervision of Investments in the Development of Natural-Gas Transportation Pipelines (“Regulation 15/2019”), which is aiming to realize more accountable and transparent natural-gas transportation tariffs.[2]