PIM says gas supply secured for the next 20 years
Friday, June 18 2010 - 08:53 AM WIB
?We state here that the gas supply issue for PIM in the short, medium and long-term has been resolved. Gas supply in the next 20 years has been secured,? said PIM president director Mashudianto said on Friday.
He explained that for 2010, PIM has obtained 3 cargoes of gas supply commitment from the Bontang LNG plant, and another 3 cargoes from ExxonMobil?s Arun field.
With the 6 cargoes of gas supply, one of PIM?s production facilities can run at full capacity of 1,725 tons of urea per day. The second one has been suspended due to technical problems and is currently still undergoing repair works.
?All of the (fertilizer) production will be dedicated for the domestic market,? Mashudianto said.
PIM hopes that in 2011-2012, it will be able to run its two production units at full capacity as the company has obtained gas supply commitment of 11 cargoes in 2011 and 12 cargoes in 2012 from the Bontang plant.
In 2013, PIM will obtain gas supply from PT Medco Energi Internasional?s Block A gas field.
The company has signed a gas sales and purchase contract with Medco in December of 2007 for a 9-year period, under which PIM will obtain 110 MMSCFD gas supply in the first four years, and 160 MMSCFD in the following five years. The Block A field is expected to come on stream in 2013.
?In 2015, we?ll obtain (gas) supply resulting from the modification of the Arun NGL plant to LNG receiving terminal. After the modification is completed, gas supply for PIM, PLN (electricity company), and other industries in Aceh will be secured for the next 20 years,? Mashudianto added. (godang)