Kujang fertilizer plant gets gas supply from Odira Energy Persada

State owned fertilizer producer PT Pupuk Kujang will receive gas supply of about 17 million standard cubic feet per day (MMSCFD) from PT Odira Energy Persada to operate its unit I fiertilizer plant (Kujang I), Bisnis Indonesia reported on Wednesday.

Deputy of the Coordinating Minister for Economy, Eddy Putra Irawan said in Jakarta on Tuesday that PT Pupuk Kujang was still negotiating the price of the gas with PT Odira Energy Persada, without mentioning the gas field source.

He, however, said that the gas supply from PT Odira would be far from enough to meet the gas need of the Kujang I plant which reached about 60 MMSCFD or 570,000 tons a year. "Kujang I still needs additional gas supply of about 42 MMSCFD to enable it to operate normally," he added.

Kujang I stopped its operation recently because state oil and gas firm Pertamina was no longer able to meet its gas needs due to depletion of its gas reserves. Under the existing contract which will end in December, Pupuk Kujang should receive gas supply of about 60 MMSCFD to produce about 570 tons of urea and 330 tons of ammonia a year.

"We hope other companies such as PGN and PLN will provide bridging gas supply before Kujang I receives gets gas supply from BP Indonesia," he said. Pupuk Kujang has secured a contract to get supply from BP Indonesia to replace the gas provided by Pertamina. The gas supply from BP will, however, begin in January, 2006.

PT Pupuk Kujang operates two fertilizer plants, Kujang I and Kujang II in Cikampek, West Java. The newly built Kujang II, which will begin its commercial operation next year, has also signed a gas supply contract until 2009. (*)