Fertilizer firm stops operation, no gas supply from ExxonMobil
Wednesday, September 17 2003 - 03:47 AM WIB
Quoting sources, the paper said ExxonMobil had stopped gas supply to the firm since early August due to the disagreement on the price for the gas.
In July this year, upstream authority BP Migas raised gas price for fertilizer industry to US$3 per MMBTU from $1.1.
AAF?s management opposed the decision, which resulted in the stoppage of gas supply from ExxonMobil, the only gas producer in the province.
Aside from AAF, ExxonMobil also sends its gas to PT Arun NGL, which turns the gas into LNG.
The paper failed to get confirmation from AAF?s management on the suspension of the fertilizer firm?s operation. But, according to the paper, the firm?s president, Rauf Purnama, earlier complained that the new price set by BP Migas was too expensive. The ideal price is below $2 per MMBTU, according to Rauf,
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 made the thousands of workers of the firm worry about the future of their jobs, according to the paper.
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.
Many areas in Aceh are still considered dangerous as the military is still conducting campaigns against local rebels. (*)