BP expected to set gas price for fertilizer mid this year
Wednesday, February 17 2016 - 09:53 AM WIB
The Ministry of Industry expects BP Indonesia, the leader of Tangguh consortium, to set by the he price of gas for fertilizer plants by the middle of this year.
Director General of Chemical, Textile and Miscellaneous Industries Harjanto said on Wednesday that there are two fertilizer plants planned to be built in Bintuni Gulf near the Tangguh LNG plant and the gas for the fertilizer plants is expected to come from the fields that now supply gas to the LNG plant. The government has allocated 180 mmscfd of gas from Tangguh for the fertilizer plants.
According to Harjanto, at present, BP is certifying gas reserves in the fields now producing gas for Tangguh LNG plant and calculating production costs before deciding the price. The certification process which is being carried out together with upstream authority SKK Migas is scheduled for completion in April of this year.
?The government will be involved in the price-setting price in order to make it affordable either by reducing its shares or creating a new gas formula,? he said.
Aside from fertilizer plants, the government expects petrochemical industry will also be built in the Bintuni Gulf industrial zone, he said.
Editing by Johannes Simbolon