ExxonMobil resumes gas supply to AAF: BPMIGAS

ExxonMobil Oil Indonesia will on Thursday (today) resume natural gas supply to fertilizer maker PT ASEAN Aceh Fertilizer (AAF), an official of upstream oil and gas authority BPMIGAS said.

As a startup, 5 million cubic feet per day (MMCFD) of gas will be transmitted to AAF’s fertilizer plant which is located in Arun, Aceh, and the volume will ramp up to 50-60 MMCFD -- the actual need of the plant -- in ten days, BPMIGAS vice chairman Kardaya Warnika told reporters Wednesday.

The gas is valued at US$1.85 per million British thermal unit, which is a non-subsidy price, Kardaya said.

Leaders of ExxonMobil, state oil and gas firm Pertamina and AAF will sign an agreement on Thursday (today) for the resumption of the gas supply, Kardaya said.

ExxonMobil stopped its gas supply to AAF and another fertilizer producer in Aceh, PT Pupuk Iskandar Muda, due to the decline in its gas reserves and because the company’s gas production is all supplied to the Arun LNG plant to enable the latter to meet its export commitment. (godang)