Aceh fertilizer requests for LNG export reduction

Aceh-based fertilizer maker PT Pupuk Muda Iskandar (PIM) has requested the government to ensure more natural gas supply from Arun for the company’s plant by reducing the volumes of gas meant for exports by at least three LNG cargoes equivalent.

“Three LNG cargoes are enough for the plant to operate for one year,” PIM president director Hidayat Nyak Mat told reporters in Jakarta.

Arun gas is mostly for exports in the form of LNG. In 2003, Arun shipped about 115 cargoes or around 6.5 million tons of LNG.

Activities of PIM’s fertilizer plant, or PIM I, have been disrupted over the past several months due to a drop in gas supply from Arun fields operated by ExxonMobil Oil Indonesia, the only gas producer in Aceh. Exxon’s Arun gas reserve have depleted over the past several years.

Gas supply shortage from Exxon also has caused PIM to delay its plan to launch another fertilizer plant, PIM II.

Hidayat said Wednesday PIM II had undergone trial operation since last month, consuming seven million cubic feet per day (MMCFD) of gas. The volume might ramp up to 50 MMCFD at the end of this month, Hidayat said.

Meanwhile, a limited cabinet meeting will be held Wednesday afternoon (today) to discuss fertilizer supply to PIM and PT ASEAN Aceh Fertilizer, which also operates a fertilizer plant in the province. (godang)