The Vice Minster of EMR's Statement on Gas Price US$ 1 per MMBTU in Algeria

JAKARTA - Vice Minister of Energy and Mineral Resources (ESDM), Arcandra Tahar did a working visit to three countries, Algeria, France and America. While visiting Algeria, Arcandra asked an explanation to President Director Sonatrach, Algeria's State-Owned Enterprise regarding information on gas selling price of US$ 1 per MMBTU. They explained if the sale price of US $ 1 per MMBTU is only intended for the needs of Algerians only, not for industry and export comodity.

The price of gas for export in Algeria is not much different from Indonesia which is US $ 6-7 per MMBTU. Indonesia's gas prices is still compete with the current world gas prices.

"The Algerian system is socialist. The US$ 1 per MMBTU gas price, it only applies to their society needs and the US$ 1 price does not apply to exports and industries," said Arcandra in a press conference at the ESDM Ministry on Wednesday (13/3).

Arcandra added that Algeria is exporting gas to Europe using pipes at 10% of the prevailing crude price. So, if the current price of crude is around US $ 60 then the gas price is around US $ 6 per MMBTU, therefore the price of US $ 1 for export is not possible. Let alone the export by using LNG then.

"So the gas price in Algeria at US $ 1 per MMBTU is only for domestic consumption, only for their own society and for the industry it is impossible to give the US $ 1 price and it is confirmed," explained Arcandra.

With the 10% price of the crude it is almost certain that the gas selling price in Algeria is not much different from that in Indonesia and other world countries. To provide a healthy perspective on national gas prices, the government invites domestic companies to import gas if it is possible that import prices are cheaper than domestic gas prices.

"It is possible to import if the price is much cheaper than the domestic price. So, we can give a healthy perspective on gas prices in Indonesia," said Arcandra. (NA)

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