Lack of gas supply may halt Pusri?s operation
Monday, December 14 2009 - 02:02 AM WIB
Director for Marketing of the state owned Pusri, Bowo Kunto Hadi, said in Palembang on Sunday that the current gas supply contract with state owned PT Pertamina would end in 2011, but no commitment had been made by Pertamina and the Energy and Mineral Resources Ministry to renew the contract.
Bowo said that if Pertamina did not extend the gas supply contract, Pusri would consequently be unable to operate after the existing contract ended in 2011. ?No explanation has so far been made by Pertamina on the extension of the contract,? he said.
He said that the gas supply for fertilizer producers such as Pusri should be based on a contract lasting for at least 20 years as compared to between 5 years and 10 years at present to give the fertilizer producers more certainty in their gas supply.
?The price of gas sold in domestic market should be lower than those exported,? he said, adding that fertilizer producers such as Pusri should be also given a special price because the larger part of their production are sold at subsidized prices.
The price of gas bought by Pusri has shown a hefty increase in recent years. At present the price is US$3.6 per British thermal unit (BTU), a significant increase from $2 in 2005.
Pusri needs 225 million standard cubic feet of gas per day (MMSCFD) to meet its production target. (*)