No more signs of life at AAF's industrial complex
Saturday, October 18 2003 - 04:15 AM WIB
The smoke that usually flowed out from the company's several production units for almost 24 hours has now came to a total halt. The busy port near the fertilizer plant has also became inactive, while the nearby villagers who have for years received electricity supply from the company's power plant now live in the darkness at night.
Kompas reported on Saturday that the economic activities in AAF's industrial complex had almost came to a total halt since Exxon cut off the natural gas supply two months ago.
As reported earlier, Exxon was forced to halt the gas supply after the fertilizer company refused to buy the gas at a market price. The fertilizer producer asked the government to subsidize the gas purchase but the proposal was turned down because unlike other fertilizer producers, AAF sold its fertilizer to Asian markets not to local farmers.
Exxon defended the decision to cut off the gas supply. The company said that the existing gas production is only enough to meet its export commitment. The company said it could switch the gas exports to meet the company's gas needs if the price of the gas sold to AAF is based on the price it has secured from its exporters. The negotiation between the government, AAF and Exxon is still continuing but it is not certain that AAF's demand could be fulfilled. (*)