State firms plan to build fertilizer plant to tap Masela gas

State fertilizer maker PT Pupuk Sriwidjaja (Pusri) and state engineering and construction firm PT Rekayasa Industri may team up to build fertilizer plant in Saumlaki island in Maluku to tap Inpex? huge gas reserves at Masela block in Timor Sea.

Pustri President Dadang H. Kodri said on Monday that both companies are now undertaking studies to review the feasibility.? We need to make a comprehensive study before making any decision,? he said.

He declined to give further detail.

An industry source said that under the study, gas from Masela will be piped to Saumlaki to feed the proposed fertilizer plant.

Japanese firm Inpex Corporation, which has 100 percent stake in Masela block, is planning to build an LNG plant-either onshore or offshore- to tap the block?s gas reserves which is estimated to exceed 10TCF.

Recent development in Indonesian oil, gas policy, however, dictates that contractors must prioritize gas supply to domestic needs. (godang/bernard)