Ceramics producers stop operation on gas supply shortage

Most ceramics companies are suffering from huge financial losses because they are compelled to halt operation due to the shortage of gas supply which they have been relying on state gas distributor PT Perusahaan Gas Negara (PGN), Media Indonesia reported Saturday.

 

“Since Thursday at 9 a.m. gas supply to Tangerang, Serang and surrounding areas from PGN is no longer available, which has forced most of ceramics companies to stop operation,” said the Indonesian Association for Ceramics Producers' (Asaki) chairman Achmad Wijaya in Jakarta Friday.

 

He said that PGN resumed the supply of gas for several hours on Thursday but the gas it supplied did not meet the requirements for ceramics production as it had lower rate of burning power that that used to burn ceramics.

 

“Until now, the supply of gas (from PGN) remains uncertain,” he said.

 

Ceramics producers affected by the shortage of gas supply include Roman Keramik / PT Satyaraya Kramindo Indah, PT Surya Toto Indonesia, PT Industri Keramik Angsa Daya ( IKAD), PT Arwana Citramulia and Royal Doulton.

 

According to Achmad, PGN which the association has contacted said it could do nothing because the shortage of supply in the region was attributable to the state oil and gas company PT Pertamina’s move to cut gas supply to PGN. Under the gas supply contract agreed by Pertamina and PGN, the gas supply to the region which normally 80 MMSCFD has been cut to around 55 MMSCFD.

 

Achmad also said that PGN’s tendency to seek new customers and neglect the existing ones might contribute to the gas supply shortage problem in the region. (*)