PT PIM gets additional gas supply from Exxon

ExxonMobil Indonesia has agreed to provide additional supply of natural gas to the Aceh-bsaed state owned oil fertilizer producer PT Pupuk Iskandar Muda (PIM) after the government issued a guarantee that it would import two cargoes of liquefied natural gas (LNG) to replace the gas supplied to the fertilizer producer, Investor Daily reported on Tuesday.

"The guarantee letter was signed this morning to ensure that that PT PIM will get additional supply from ExxonMobil," State Minister for State Enterprises Sugiharto said in a hearing with members of the House of Representatives (DPR) on Monday.

As part of the agreement, Sugiharto, said that the government, through state owned oil and gas company Pertamina, would import two cargoes of LNG possibly from Oman in exchange for the additional gas supply. The two cargoes of LNG will be used to meet the export commitment of the Arun LNG plant.

The swap agreement is needed because the gas production at ExxonMobil's Arun gas field in Lhok Seumawe, Aceh is enough only to meet the export commitment of the Arun LNG plant.

The deal, the second since July, will enable PT PIM to get gas supply from ExxonMobil for two months. The previous agreement also enabled PT PIM to get gas supply for two months. (*)