Precision Gas & LNG Accounting
LNG contract revenue recognition, PSC gas accounting, and SKK Migas reporting
Compliance Warning
This industry is considered high risk and may receive closer attention from tax authorities. Professional tax consultation is strongly recommended.
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
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
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
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?
Consult your bookkeeping and tax needs with our professional team. Free initial consultation.
Free Consultation via WhatsAppGas Mining Accounting Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
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.
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