Petrokimia Gresik declares force majeure

State fertilizer firm PT Petrokimia Gresik (Petrogres) said that the company is now in force majeure due to the suspension of gas supplies following an explosion in the gas pipeline at Sidoarjo in East Java, Bisnis Indonesia reported Thursday.

?I have already sent the letter to Minister of Agriculture today,? Petrogres president director Arifin Tasrif said in Jakarta on Wednesday.

Petrogres was forced to declare itself as force majeure because the company will be expected to stop production for at least 10 months and more until there will be an alternative gas supplies.

?EMP Kangean (PT Energi Mega Persada in Kangean), our gas supplier, declared force majeure so we have also done the same thing. Because until now, there is no certainty about the alternative gas supplies,? Arifin said.

Minister of Industries has given green signal for gas swap.

?Swap will be one of the options for Ministry of Industries. We support swap. In principle, we try all means so that Petrogres will get gas,? Benny Wahjudi, director general of agro-industries and chemicals, said.

Minister of Agriculture Anton Apriyantono said that his office has asked PT Pupuk Sriwidjaja to supply subsidized urea to areas where Petrogres has been providing the fertilizer.

Before stopping its production, Petrogres used to produce and sell 1,300 tons of urea per day and 1,200 tons of ammonia per day. (*)