Natural Gas Distribution Facilities Auction Mechanism Updated: Participant Criteria Redefined and Granting of Special Rights Clarified

In 2019, the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas Bumi – “BPH Migas”) issued Regulation No. 20 of 2019 (“Regulation 20/2019”) on the Auction of Transmission Segments and/or Areas for Natural Gas Distribution Networks (collectively referred to as “Facilities”) and the Granting of Special Rights. As its title suggests, Regulation 20/2019 was introduced in an effort to improve and ensure the economical, effective and efficient construction of advanced natural gas transmission segments and/or distribution channel areas.[1]