PKT finally receives additional gas supply

Thursday, September 26 2002 - 03:10 AM WIB

State owned oil and gas Pertamina through its three production sharing contractors TotalFinaElf, Unocal and Vico have finally managed to provide additional gas supply to PT Pupuk Kalimantan Timur (PKT), paving the way for the state owned fertilizer producer to resume its full operation, Kompas reported on Thursday.

PKT?s corporate secretary Zulkifli said in Bontang that the gas producers started to add the supply on Wednesday evening and that the supply was expected to run at normal level beginning Thursday morning.

With the additional gas supply, the Bontang, East Kalimantan-based PKT is expected to be able to produce at full capacity of about 6,900 tons a day from its four fertilizer plants beginning this week, he said. The newly constructed fifth plant is still conducting a trial production.

Pertamina?s production sharing contractors reduced the gas supply to180 million cubic feet from 220 million cubic feet to PKT on August 14, forcing the fertilizer producer to temporarily closed down one of its factories. The cut in the gas supply has drew public controversies and fears that the cut in the gas supply would affect the country?s urea fertilizer production.

Pertamina?s president director Baihaki Hakim denied press reports on Monday that the decline in the gas supply to PKT occurred because most of the gas production from three gas producers were processed for exports.

"The decline is not due to export activities but due to a damage in the gas supply facilities from Total Indonesie to PT PKT. This week the pipeline facility will be normal again," he was quoted as saying by Kompas daily.

But Nurul Fajri, the spokesman of Total Indonesie, now known as TotalFinaElf, denied that there was a damage in its gas pipeline. "We don?t have any direct pipeline to PKT," he said.

PT PKT?s gas is provided by TotalFinaElf, Unocal and Vico through an integrated pipelining network. Gas supply from TotalFinaElf and Vico are transmitted through Unocal?s gas pipeline which is directly linked to PT PKT?s fertilizer plants. The three companies also transmit their gas to the Bontang LNG plant. (*)

Share this story

Tags:

Related News & Products