PIM gas swap contract to continue

The government has guaranteed the supply of natural gas to state owned fertilizer company PT Pupuk Iskandar Muda (PIM) for next year through the continuation of the existing gas swap scheme, the Bisnis Indonesia reported Wednesday.

Minister of Industry Fahmi Idris said so far there are several alternatives that can guarantee gas supply to PIM.

?Presently, gas is being supplied through the gas swap system, under which some portion of Pupuk Kaltim fertilizer company?s gas supplies will be diverted to PIM,? Fahmi said on Tuesday in Jakarta.

Gas swap contract between Pupuk Kaltim and PIM is just one-year old. Under the contract, PIM has received three cargoes of gas, which is practically enough for only six months operation of the fertilizer plant.

According to Fahmi, the gas swap system still can be continued next year. For the long-term, the government will try to get gas from abroad. One of the possible countries that will supply gas to PIM is Qatar.

Fahmi said Qatar has already made an offer to supply gas to the company and negotiation with the country was still in progress (*)