ExxonMobil says difficult to supply gas to fertilizer firms
Thursday, September 18 2003 - 04:08 AM WIB
?Gas supplies to AAF and PIM-2 are experiencing troubles due to operational problems at PT Arun and Arun gas fields,? EMOI?s spokesperson Deva Rachman said in a statement on Thursday.
She did not provide details on the problems, but a fire incident hit Arun gas fields last month, while PT Arun experienced a power blackout.
Deva made the statement in response to the reports that AAF has suspended operation for about a month because it no longer gets gas supply from EMOI, which is the only gas supplier in the province.
A local paper reported that the stoppage of gas supply was because of the disagreement between EMOI and the fertilizer firm over the price for the natural gas.
In July this year, upstream authority BP Migas raised gas price for fertilizer industry to US$3 per MMBTU from $1.1. The fertilizer firm asks the price to be cut to below $2 per MMBTU.
Deva acknowledged that no agreement had been reached on the price.
?At present, (state-owned oil and gas company) Pertamina, supported by (upstream authority) BP Migas and EMOI, is negotiating on the new contract for gas supplies to AAF and PIM-2,? Deva said.
?Thus far, no agreement has been reached,? she said.
Aside from the fertilizer firms, EMOI also supplies gas to PT Arun, which turns the gas into LNG.
Meanwhile, Kardaya Warnika, deputy chairman of BP Migas, told Petromindo. Com on Thursday said PIM-2 still received gas supplies from EMOI and the supplies had been increased to 63 million cubic feet per day (MMCFD) from 52 MMCFD.
He admitted however gas supplies to AAF has yet to be restored, but he did not provide details about the reasons.
AAF is a joint venture established by all members of the Association of Southeast Asian Nations (ASEAN).
The suspension of the firm?s operation has reportedly made the thousands of workers of the firm worry about the future of their jobs.
It also has an impact on the local communities who depend on power supply from the firm. Many villages around the firm?s complex have been in power blackout for about a month because the firm has left its power generating facilities idle. (Godang)