ID :
107020
Wed, 02/17/2010 - 09:07
Auther :
Shortlink :
https://oananews.org//node/107020
The shortlink copeid
PETROKIMIA GRESIK FACING GAS SUPPLY CRISIS
Gresik, East Java, Indonesia, Feb 16 (ANTARA) - State fertilizer producer PT Petrokimia Gresik may become paralyzed as it is facing a serious lack of gas as an important element in fertilizer production.
The impending gas supply crisis was mentioned by President Director of PT Petrokimia Gresik Arifin Tasrif when receiving State Minister for State Enterprises Mustafa Abubakar here Tuesday.
Arifin Tasrif said the gas supply in the 2010-2011 period would drop significantly following a decline in production of Pagerungan well of Kangean Energy Indonesia Ltd. and the expiry of several gas supply contracts.
"The contract with Kodeco Excess Gas and PT PGN (state gas distributor) will come to an end in October this year, while the contract with Kodeco Gas in May next year," Arifin said.
"So, from November 2010 to December 2011 there will be lack of gas, and consequently the Ammonia Urea plant might become paralyzed," he added.
Arifin said a number of measures had been taken to overcome the lack of gas supply like coal conversion, increased gas supply from Kodeco and renewing the contracts with Kodeco, PGN and KEI.
But even this did not solve the problem, because the gas supplier had been asking for a gas price hike.
KEI asked to raise the price of gas from Pagerungan well from 2 and 2.75 to 4.5 US dollars per MMBTU, while the gas from Terang Sirasun Batur (TSB) well from 3.8-3.9 to 5.6-6.5 US dollars per MMBTU.
"We objected to a gas price hike," Arifin Tasrif said.
PT Petrokimia Gresik needs 60-70 MMSCFD of gas.
State enterprises minister Mustafa Abubakar said gas supply for fertilizer factories needs special attention as it is closely linked with the national food security.***
The impending gas supply crisis was mentioned by President Director of PT Petrokimia Gresik Arifin Tasrif when receiving State Minister for State Enterprises Mustafa Abubakar here Tuesday.
Arifin Tasrif said the gas supply in the 2010-2011 period would drop significantly following a decline in production of Pagerungan well of Kangean Energy Indonesia Ltd. and the expiry of several gas supply contracts.
"The contract with Kodeco Excess Gas and PT PGN (state gas distributor) will come to an end in October this year, while the contract with Kodeco Gas in May next year," Arifin said.
"So, from November 2010 to December 2011 there will be lack of gas, and consequently the Ammonia Urea plant might become paralyzed," he added.
Arifin said a number of measures had been taken to overcome the lack of gas supply like coal conversion, increased gas supply from Kodeco and renewing the contracts with Kodeco, PGN and KEI.
But even this did not solve the problem, because the gas supplier had been asking for a gas price hike.
KEI asked to raise the price of gas from Pagerungan well from 2 and 2.75 to 4.5 US dollars per MMBTU, while the gas from Terang Sirasun Batur (TSB) well from 3.8-3.9 to 5.6-6.5 US dollars per MMBTU.
"We objected to a gas price hike," Arifin Tasrif said.
PT Petrokimia Gresik needs 60-70 MMSCFD of gas.
State enterprises minister Mustafa Abubakar said gas supply for fertilizer factories needs special attention as it is closely linked with the national food security.***
