PIM to get LNG supply from Tangguh
Friday, August 7 2009 - 01:20 AM WIB
Ministry of Industry said on Thursday that Aceh fertilizer maker PT Pupuk Iskandar Muda (PIM) will get 12-16 cargoes of LNG from Tangguh in 2010-11 to feed the plants. Bisnis Indonesia reported Friday.
Director General of Agro and Chemical Industries at the Ministry of Industry, Benny Wachyudi said the certainty of gas supply would enable PIM to maintain its full operations status.
He said PIM will pay US$4.4-4.5 per MMBTU for Tangguh gas.
PIM on Tuesday signed an MoU with upstream oil, gas authority BPMIGAS to study the possibility to divert LNG intended to be shipped to Sempra Energy from BP-operated Tangguh LNG to PIM.
PIM is searching for gas supply in order to be able to operate its fertilizer plant as supply contract with ExxonMobil has expired and gas supply from Medco-operated Block A would not start until 2011. (*)