Pupuk Kaltim, Petrokimia suffer shortage of gas supply
Thursday, September 25 2003 - 06:22 AM WIB
Omay K. Wiraatmadja, president director of Pupuk Kaltim, said that the decline of the gas supply was partly resulted from a delay in negotiation of new purchase contract with gas producers for its new fertilizer production unit.
He said that BP Migas, which is in charge of the oil and gas exploration and production, had agreed to provide gas supply of up to 263 million standard cubic feet per day (MMSCFD) from the total need of about 280 MMSCFD.
"We hope the gas supply will soon reach 100 percent," he told members of the Commission IX of the House of Representatives (DPR) in a hearing.
Also speaking at the same hearing, Arifin Tasrif, president director of state owned fertilizer producer PT Petrokimia Gresik, said that the fertilizer producer also suffered a shortage of gas supply during the first semester.
He said that Petrokimia only received gas supply of about 50 MMSCFD, lower than the total 63 MMSCFD needed by the company. "The low gas supply had caused an increase in the production cost by more than 400 percent because we had to use diesel oil as a substitute of the gas," he said.
Arifin, however, said that the company's fertilizer production remained normal despite the shortage of the gas supply. From January to August, this year, urea production reached 225,258 tons. In the same period, the company produced 350,276 tons of ZA fertilizer, 481,797 tons of SP-36 fertilizer and 75,313 tons of phonska fertilizer. (*)