PIM may stop operation soon

Aceh-based stated owned fertilizer company PT Pupuk Iskandar Muda (PIM) will be able only to operate until September 6, this year if the gas supply contract with PT ExxonMobil Indonesia is not extended, Investor Daily reported on Saturday.

PT PIM?s president director Hidayat Nyakman said in Jakarta on Friday that the contract on the supply of gas from ExxonMobil would end in September 6. ?If the government does not extend the contract, the company will automatically cut the gas supply,? he said.

Under the agreement signed on July 9, 2005, ExxonMobil agreed to supply a cargo of gas or equivalent to 2,918 MMBTU after the government assured the company that it would import a cargo of liquefied natural gas (LNG) to meet the export commitment of the Arun LNG plant, which solely relies on the gas supply from ExxonMobil.

With the gas supply, PIM will be able to operate for 50 days or until September 6. (*)