Pupuk Kaltim prioritized to receive gas supply

Minister of Industry and Trade Rini MS Soewandi said in Jakarta on Monday that the state owned fertilizer producer PT Pupuk Kaltim had been prioritized to receive gas supply from the East Kalimantan-based gas producers, according to Suara Pembaruan daily.

The minister said that the priority was given to PT Pupuk Kaltim to ensure that the country?s fertilizer production would be sufficient enough to meet the surge in the demand during the September-December planting season.

PT Pupuk Kaltim, one of the country?s major fertilizer producers, shut down one of its five urea fertilizer factories last week after state owned oil company Pertamina through its production sharing contractors cut down the gas supply to the fertilizer company.

PKT?s spokesman Teddy Nawardi said earlier that Pertamina?s production sharing contractors had cut down the gas supply to the Bontang, East Kalimantan-based fertilizer company to 180 million cubic feet from 220 million cubic feet since August 14.

"The gas producers have agreed to temporarily prioritize their gas supply for PT Pupuk Kaltim," she told reporters.

Meanwhile, Pertamina?s president director Baihaki Hakim on Tuesday denied press reports that the decline in the gas supply to PT Pupuk Kaltim was due most of the gas production from East Kalimantan were processed for exports.

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