Fertilizer company PIM secures long-term gas supply

Aceh-based fertilizer producer PT Pupuk Iskandar Muda (PIM) has secured a long-term gas supply which will be able to support its fertilizer production within the next 20 years, Bisnis Indonesia reported on Tuesday.

President director Mashudianto said in Jakarta on Monday that the fertilizer company would receive gas supplies from the Bontang LNG plant in East Kalimantan in 2011 and 2012 and from the Block A gas block in Aceh which would be developed by PT Medco Energy Internasional, in 2013.

PIM would receive gas supplies amounting to 110 million standard cubic feet per day (mmscfd) from Block A for four years starting 2013, he said. In the following five years, the gas supply would be reduced to 60 mmcfd.

Beginning 2015, PIM would receive gas supply from an LNG receiving terminal which would be built in Arun. ?With such plans, we hope PIM will be able to get sufficient supply for 20 years,? he added.

With an increase in the gas supply, PIM would likely continue with its plan to form a joint venture with PT Perkebunan Nusantara I to produce organic fertilizer in the province.

PIM has suffered an acute shortage of gas supplies during recent years due to the decline in supplies from the Arun gas field in the province, its main gas provider. At present, the company operates only at a half of its capacity due to the supply shortage. (*)