Govt may build LNG train to solve Aceh fertilizer industry's problems

In an alternative solution to the shortage of gas supply faced by fertilizer industry in Aceh, the government is considering building another liquefied natural gas (LNG) train at the Bontang LNG plant in East Kalimantan, Bisnis Indonesia newspaper reported in its Monday edition.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government is currently evaluating the plan.

?We are still evaluating this problem. We are planning to build Train I in Bontang as an alternative to solve the shortage of gas supply,? Purnomo told reporters at the weekend in Jakarta.

"We are still considering aspects, including who shall build the train and pay the construction costs," he added.

He noted, however, the construction of the new train will not quickly solve the gas shortage problems faced by Aceh's fertilizer industry as it will take some time to build the new faciilities.

?We can?t build this reserve train in one or two days, but it will take at the most one year,? he said.

The government has been facing problems in supplying gas to fertilizer companies in Aceh due to decreasing productivity at Arun gas field in the province. The solution to the problem is to deliver most of the Arun gas to fertilizer firms. This will result in the decrease in the gas supply to PT Arun NGL Co. and the inability of the LNG plant to meet its supply obligation.

The government has bought several cargoes of LNG from foreign producers to cover the suppply obligation of the LNG plant. However, the government is now facing difficulties to buy more due to a blast at Algeria?s LNG plant and increase in global gas consumption. (*)