Gas producers plan to stop supply to fertilizer firms

Natural gas producers in Bontang, East Kalimantan plans to temporarily halt gas supply to fertilizer manufacturers in the province due to "gas supply crisis," Kardaya Warnika, chief of oil and gas authority BP Migas, said on Wednesday.

He said that the proposed move was necessary to fulfill the current LNG committment to foreign buyers.

"Because of a supply crisis, ... the gas producers in Bontang has planned not to supply the fertilizer firms during December. The supply will be revived once the supply problem to foreign buyes have been resolved," Kardaya told reporters.

He did not provide details, but said that the proposal from the gas producers was not yet final. Gas producers in the country have often complained about the relatively low price of gas paid by fertilizer companies. The price was set by the government to ensure cheaper fertilizer for farmers. (Godang)