Download - Bph Migas Toll Fee
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Gas Pipeline Regulation(BPH Migas)
Gas Pipeline Regulation(BPH Migas)
1BADAN PENGATUR HILIR MINYAK DAN GAS BUMI BADAN PENGATUR HILIR MINYAK DAN GAS BUMI
Borobudur Hotel, Jakarta, IndonesiaOctober 5th, 2011
Borobudur Hotel, Jakarta, IndonesiaOctober 5th, 2011
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2(BPH Migas) Key Functions (BPH Migas) Key Functions
ToRegulate,DetermineandSupervisefollowingmatters:
1. NaturalGasPipelineTollFee;
2. PriceofNaturalGasfor householdsandsmall scalecustomers;
3. NaturalGastransmissionanddistribution businesses;
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3Pipeline RegulationPipeline Regulation
ThesubjectsareregulatedbyBPHMigas inThePipelineRegulation:
1. SpecialRightAuctionofGasPipeline,regulatedbyBPHMigasRuleNo.12/BPHMigas/II/2008
2. TollFee(Tariff)ofGasPipeline;regulatedbyBPHMigasRule No.16/P/BPHMigas/VII/2008
3. OpenAccessofGasPipeline,regulatedbyBPHMigasRuleNo.15/P/BPHMigas/VII/2008
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4SpecialRightAuctionofGasPipelineSpecialRightAuctionofGasPipelineOutlineofthePipelineSpecialRightAuctionRegulation:
1. Biddercompaniesshouldhaveatemporarygastransportationbusinesslicense,issuedbytheminister
2. Providetechnicalandeconomicanalysisofthepipelineproject.
3. Bidamountofpipelinetollfeetobeappliedtothepipelineinquestion
4. Provideabankguaranteewithaminimumvalueof0.1%oftheestimatedinvestmentcosts
5. Provideapromissorynote/collateraltofinancetheprojectissuedbyfinancialinstitutions
6. Bidderswhobidthelowesttollfeeisdeterminedasthewinner
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5TollFee(Tariff)ofGasPipelineTollFee(Tariff)ofGasPipelinePrinciplesinDeterminingTollFee:
1. GovernmentRegulationNo36,2004,Article33,requiresthattollfeeforgaspipelinemustconsidertheeconomicsofpipelineowner,andinterestoftheshippersandconsumers
2. ThebasicmethodologyweusetoestablishtollfeebasedonTheeconomicsofpipelineandshippersinterestiscostofserviceratemaking
3. Underthecostofserviceratemaking,tollfeearedesignedbasedonapipeline'scostofprovidingserviceincludinganopportunityforthepipelinetoearnareasonablereturnonitsinvestment.
4. Thesecostsincludeoperatingandmaintenanceexpenses,depreciationexpense,taxesandareasonablereturnonthepipeline'sinvestment.
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6TollFee(Tariff)ofGasPipelineTollFee(Tariff)ofGasPipelineCostOfServiceFormula:
Where: COF =CostofserviceFormula O&MExpenses =OperationandMaintenanceExpenses A&GExpenses =AdministrativeandGeneralExpenses DExpenses =DepreciationExpenses IT =IncomeTaxes
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7TollFee(Tariff)ofGasPipelineTollFee(Tariff)ofGasPipelinePipelinesAssetBase
GrossPlantistheoriginalcostoftheplant,orfacilities,ownedbythepipeline
ReturnOnCapital(IRR)
ReturnonCapital=AssetBasexWACC
WACC istheweightedaveragecostofcapital
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8TollFee(Tariff)ofGasPipelineTollFee(Tariff)ofGasPipeline
OperationandMaintenanceExpenses
AdministrativeandGeneralExpenses
Theseexpensesrepresentthepipeline'scostofoperatingandmaintainingitsutilityplantandequipment,orthecostofrunningthephysicalpipelinesystem.
Theseexpensesincludesalariesandwages,officesupplies,outsideservices,regulatorycommissionexpenses,rentsandgeneralplantmaintenance.
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9OpenAccessofGasPipelineRegulationOpenAccessofGasPipelineRegulation1. Pipelineowner(transporters)mustprovideopportunityforany
shipperswithoutdiscriminationtobeableusingthetransporter'spipeline.
2. TransportershallprepareanAccessArrangement,whichisanopenaccessrulesforthepipelineinquestion,thatcontainsthetermsandconditionsthatmustbeobeyedbybothtransporterandshippers.
3. ThemainthingarrangedinanAccessArrangementare:(1)Operatingphilosophyofpipeline,(2)Gasmanagementsystem,(3)Rulesrelatingtothetechnicalaspects,and(4)rulesrelatingtothelegalaspects.
4. InordertoEstablishfairness,beforetheAccessArrangementisapprovedbyBPHMigas,AccessArrangementinquestionmustbediscussedinadvancewithrelevantpartiesforcorrection.
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