Exxon starts gas supply to PIM

ExxonMobil Oil Indonesia (EMOI) Arun gas field has started gas supply to Aceh fertilizer firm PT.Pupuk Iskandar Muda (PIM) on Thursday , an upstream oil, gas authority senior official said.

BPMIGAS Chairman R. Priyono said EMOI will supply PIM 50-60MMCFD, ramping up to 120MMCFD when the jumper pipe construction is completed.

PIM Operations Director Lili Djajuli said the fertilizer firm would pay US$ 5,88 per MMBTU under 1-year GSA that was signed on January 14, 2009.

PIM would need gas supply equals to 9 cargoes of LNG to meet its fertilizer production target in 2009. Under the swap scheme, EMOI will cut supply to Arun LNG plant equal to 9 cargoes in 2009. Government will then buy 9 cargoes of LNG in international market and deliver them to Arun?s customers. (bernard/godang)