Petrokimia Gresik gets gas supply from MDA-MDH field

The government has finally agreed the gas requirement for state-owned petrochemical firm PT Petrokimia Gresik (Petrogres) to come from the MDA-MDH field in Offshore Madura Strait, East Java, which is operated by Husky-CNOOC Madura Ltd, Bisnis Indonesia reported Thursday.

The paper quoted President Director of the East Java-based Petrogres, Hidayat Nyakman as saying Wednesday that the agreement on gas allocation from the field has been signed by the company, the Ministry of Energy and Mineral Resources, upstream oil and gas authority SKK Migas, and the Ministry of Industry.

Hidayat said that as with the gas allocation agreement, the company will press ahead with its plan to build the second ammonia and urea manufacturing plant.

He added that the company is now preparing to make the head of agreement with the field?s operator, and would also soon start the tender process for the construction of the manufacturing plant.

Petrogres had been seeking to get gas from the MDA-MDH field, while the government at the time was reviewing the reliability of the 19 years old pipeline to be used to channel the gas from the offshore field to the petrochemical company, located in Gresik, East Java. (*)