PT Pupuk Kujang faces shortage of gas supply

State owned fertilizer producer PT Pupuk Kujang is facing a serious shortage of gas supply after state owned Pertamina refused to renew its gas supply contract to the West Java-based fertilizer producer, Media Indonesia reported on Tuesday.

Idih S. Ruskanda, the corporate secretary of Pupuk Kijang, said that Pertamina would stop the gas supply beginning next year due to the depletion of its gas field in West Java. "We are still uncertain whether we could get gas supply from other gas operators," he added.

Under the existing contract which will end in December, this year Pupuk Kujang receives gas supply of about 60 million metric standard cubic feet per day (MMSCFD) to produce about 570 tons of urea and 330 tons of ammonia a year.

Idih said that Pupuk Kujang had approached gas operator Beyond Petroleum (BP) Indonesia to provide the gas supply. "But the company has not yet given its response," he added.

Pupuk Kujang, which currently operates a fertilizer plant near Cikampek, West Java, will operate another one in 2006. Unlike the existing fertilizer plant, the new fertilizer plant Kujang B will still be able to get gas supply from Pertamina until 2009. (*)