Kujang I A plant will get gas supply from Pertamina until year end

State owned oil and gas company Pertamina has agreed to extend its gas supply to fertilizer producer PT Pupuk Kujang's IA plant until the end of this year, Republika reported on Thursday.

The chief of the regulatory body for oil and gas upstream industry BP Migas, Kardaya Warnika said in Jakarta on Wednesday that Pertamina had agreed to provide gas supply of about 34 million cubic per day (MMSCFD) to Kujang's IA plant until the end of this year.

In addition to Pertamina's gas supply, Kujang's IA plant would also receive another 8 MMSCFD from private gas producer PT Odira Energy Persada , Kardaya said.

Pertamina had earlier said that it would not extend the gas supply to Kujang's IA plant which would end this month due to the sharp decline in its gas production. Pupuk Kujang executive said that it would stop the operation of its IA plant if Pertamina cut the gas supply.

Kardaya said that Pertamina had also committed to providing gas supply of about 48 mmscfd to Kujang's new IB plant for three years. (*)