Kujang fertilizer plant suffers shortage of gas supply

State owned fertilizer producer PT Pupuk Kujang is facing a serious shortage of gas supply because the main gas supplier Pertamina has yet to decide whether or not it will be able to provide gas supply for its production unit A beginning April, Koran Tempo reported on Friday.

Arifin, the spokesman for Pupuk Kujang, said in Jakarta early this week that the company's management was still lobbying the office of state minister of state owned enterprise so that Pertamina would meet its initial commitment to provide gas supply beginning next month.

According to the memorandum of understanding (MOU) signed in December, last year, Pertamina agreed to provide a gas supply of about 34 million cubic standard feet per day (MMSCFD) beginning April. Other gas producer PT Odira also agreed to provide eight MMSCFD.

PT Pupuk Kujang operates two fertilizer plants, Kujang A and Kujang B in Cikampek, West Java. The newly built Kujang B will be officially inaugurated by President Bambang Susilo Bambang Yudhyono next month. (*)