Global Gas Prices Remain at Rock Bottom

Global gas prices remain at their lowest point compared to the all-time high reached in 2008. On Friday, October 7, 2016, natural gas traded at US$3.023 per MMBtu (million British thermal units) on the New York Mercantile Exchange, down 0.6 percent from trading on October 5, 2016.

Throughout September, gas sales reached their lowest point on September 7, trading at US$2.8 per MMBtu. At the end of September, trading closed at US$2.9 per MMBtu.

In Indonesia, the Ministry of Energy and Mineral Resources has proposed lowering domestic gas prices to between US$4-5 per MMBtu. This price reduction aims to boost the domestic industry. Presidential Regulation (Perpres) Number 40 of 2016 lists seven industries that will benefit from cheaper gas: fertilizer, petrochemical, food and beverage, footwear, paper, steel, ceramics, glass, and cement.