Gas price for fertilizer firms in Aceh will be the same with LNG price: Official

Upstream oil and gas authority BP Migas deputy chief Kardaya Warnika has made it clear that the price of gas supplied to the fertilizer companies in Aceh in 2004 will not be at the rate of US$1.85 per million British thermal unit (MBTU). The price will be set equal to the price of liquefied natural gas (LNG), Kompas newspaper reported on Friday.

This was disclosed by Kardaya to reporters in Jakarta on Thursday. This decision was taken precisely due to the swap of LNG exports from Arun in Aceh to Bontang in East Kalimantan.

Gas supply to Aceh?s fertilizer companies have been getting special treatment, especially ASEAN Aceh Fertilizer (AAF), which will get gas even though it has no contract.

If the gas price is made equal to world?s LNG price, the gas price will be dependent on the oil prices. Generally, LNG price is lower than crude oil price. (*)