Government Reregulates Utilization of Natural Gas by Power Plants

The Ministry of Energy and Mineral Resources (“Ministry”) has issued Regulation No. 45 of 2017 on the Utilization of Natural Gas by Power Plants (“Regulation 45/2017”), with the ultimate objective of increasing the utilization of natural gas by power plants while ensuring supplies of natural gas for purchase by the electrical power sector at fair and competitive prices. [1] Prior to the issuance of Regulation 45/2017, these same matters were regulated under Ministry Regulation No. 11 of 2017 on the Utilization of Natural Gas by Power Plants (“Regulation 11/2017”). [2] In essence, Regulation 45/2017 sets out a number of provisions which address the following matters: