Today may be the final day of AAF plant’s operation

Today may become the final day of the operation of PT Aceh Asean Fertilizer (AAF) plant because this evening, exactly at 5 pm, ExxonMobil will issue its final decision related to the supply of its gas to the fertilizer producer.

ExxonMobil has set Dec. 22 as the deadline for the government to decide on its request to raise the gas selling price.

“If no agreement is made and ExxonMobil sticks to its initial threat, then today will be the final day of AAF’s operation,” AAF corporate secretary Amrul As was quoted by Aceh-based news paper Serambi Indonesia on Monday.

Exxon stopped its gas supply in August this year after its sales contract with AAF ended. The company will resume the gas supply only if the price of gas is based on market price. AAF has said that it has no money to buy the gas at the market price and could make the purchase only if there is a subsidy from the government.

Exxon then resumed the gas supply on Nov. 18 as the government indicated it would provide the subsidy for AAF. However, until now there is no clear signs yet the subsidy will be disbursed.(*)