Kujang may halt operation of its IA plant due to lack of gas supply

State owned fertilizer producer PT Pupuk Kujang may halt the operation of its IA fertilizer plant if state owned oil and gas company Pertamina could not extend the gas supply contract which would end in April 31, Media Indonesia reported on Wednesday.

The fertilizer company's manager for general affairs Ade Suryanti said that PT Pupuk Kujang had appealed to Pertamina to extend the gas supply at least until December, this year.

"We need the gas supply from Pertamina until December, because in 2007, British Petroleum (BP) would begin its gas supply for the company," he said. "If Pertamina could resume the gas supply until December, the halt in operation of IA fertilizer plant could be avoided," he said.

Meanwhile, Pertamina's spokesman Mochammad Harun said that it would be difficult for Pertamina to extend the gas contract because all of the gas resources would be used to meet contract with other industrial buyers.

PT Pupuk Kujang operates two fertilizer plants, Kujang A and Kujang B in Cikampek, West Java. The newly built Kujang B was officially inaugurated by President Bambang Susilo Bambang Yudhoyono early this month. (*)