Pertamina cuts gas supply for fertilizer maker Pupuk Kaltim

State oil and gas firm Pertamina has reduced natural gas supply for East Kalimantan-based fertilizer producer PT Pupuk Kaltim by some 30 million standard cubic feet per day (MMSCFD), causing a significant drop in its fertilizer production, Pupuk Kaltim said on Friday.

Publicly listed Pupuk Kaltim president director Omay K Wiraatmaja said Pertamina on August 14 had cut natural gas delivery to Pupuk Kaltim to 191 MMSCFD from 221 MMSCFD. Pupuk Kaltim used natural gas as the raw material for making fertilizer.

Pertamina had decided to cut gas supply for Pupuk Kaltim after it failed to agree with the latter on fertilizer prices for a new gas supply contract still under negotiation, Omay said in a report submitted to Surabaya Stock Exchange.

Omay said gas supply decrease had caused Pupuk Kaltim?s production drop by 30,000-43,000 tons monthly.

He said they had reported the case directly to Pertamina president director Baihaki Hakim and asked him to review Pertamina?s move against Pupuk Kaltim. (leo)