Petrokimia Gresik, Husky sign gas supply agreement

After lengthy negotiation, state-owned fertilizer company PT Petrokimia Gresik finally signed on Thursday a gas sales and purchase agreement on Thursday with Husky-CNOOC Madura Limited, the operator of Madura Straits PSC in East Java.

Petrokimia President Director Hidayat Nyakman was quoted by Antara as saying Thursday that under the agreement, Husky will supply 85 mmscfd of gas to Petrokimia?s second ammonium production facility in East Java, whose construction will start this year, at a price of US$6.5 per mmbtu, and a price escalation of 2.5-3 percent per year.

The US$661million plant, which will have capacity of 200 tons of ammonium per day, is projected to be completed in August-October 2017. (*)