Accounting & Bookkeeping KBLI 06100 Risk High

Precision Gas & LNG Accounting

LNG contract revenue recognition, PSC gas accounting, and SKK Migas reporting

Common Challenges

Take-or-Pay Revenue Recognition

Long-term LNG contracts have take-or-pay clauses where the buyer must pay minimum volumes even without lifting.

Gas Infrastructure Capitalization

Large investments in LNG facilities, pipeline networks, and gas processing plants require proper capitalization and depreciation policies.

Gas Price and Adjustments

Index-based LNG price formulas (JCC, ICP, JKM) with periodic price reviews affecting revenue recognition.

Our Solutions

1

LNG Contract Accounting

Developing revenue recognition policies for LNG contracts considering take-or-pay, make-up gas, and price review clauses.

  • PSAK 72-compliant revenue
  • Correct deferred revenue
  • Complete contract disclosure
2

Infrastructure Asset Management

Capitalization of LNG facility and pipeline development costs with depreciation components matching useful lives.

  • Fair asset values
  • Accurate depreciation
  • Complete asset register
3

Price Review Accounting

Recording mechanisms for gas price adjustments based on periodic price reviews with appropriate accruals.

  • Accurate adjustment receivables
  • Measurable per-cargo margin
  • Accurate revenue forecast

Related Tax Regulations

PSAK 64

Mining Activities

Accounting standard for natural gas and LNG exploration, development, and production

PSAK 73

Leases

Accounting for LNG facility leases, tanker ships, and gas pipeline infrastructure

PSAK 72

Revenue from Contracts

Revenue recognition for long-term LNG sales contracts with take-or-pay clauses

Need Help with Gas Mining Accounting?

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Frequently Asked Questions

How is take-or-pay LNG contract accounting handled?

For take-or-pay contracts, revenue is recognized when control of gas transfers to the buyer (at delivery point). If the buyer pays without taking gas, the payment is recorded as a contract liability. If the buyer has make-up gas rights in future periods, the obligation remains until make-up gas is delivered or rights expire.

What is the accounting difference between natural gas and crude oil in PSCs?

Fundamentally similar using the PSC framework, but natural gas has special characteristics: long-term sales contracts (LNG SPAs), formula-based pricing, larger liquefaction facility investments, and different DMO gas obligations compared to oil. Its cost structure and revenue recognition are more complex.

How do accounting services improve operating cost efficiency?

Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.

Can financial reports be accessed in real time?

Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.

How do you ensure reports are ready for external audits or banks?

Reports are prepared by qualified accounting professionals with clear documentation and traceable transaction data.