The Government will Renegotiate gas contracts

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The Government will Renegotiate gas contracts

Wednesday, 10 February 2010 10:24

JAKARTA: The government will renegotiate gas contracts which ended in 2010 to supply gas for the revitalization of the national fertilizer industry filled.
Until the time 100-day program ends the Ministry of Industry, gas guarantee for six new fertilizer plant that will be revitalized unresolved.

BUMN Minister Mustafa Abubakar indicated gas contract renegotiation opportunities big enough. "Information related to the gas export contract, which ends this year from the Ministry of Energy and Mineral Resources as at Cipanas. Therefore, will direnegosiasikan again, mainly to meet domestic supply, the rest is exported. In order for Indonesia gas market is not lost," said Mustafa told Bisnis yesterday .

According to him, instructed President Susilo Bambang Yudhoyono during a retreat in Cipanas domestic gas supply mainly to revitalize fertilizer plants.

"The supply of gas to be serious attention given the government's fertilizer plant should be able to realize the production with the optimal level to support national food security."

"I have communicated this issue with the Minister of Energy and Mineral Resources and Minister of Industry for the long-term contracts that will mature quickly evaluated by prioritizing the interests of domestic industry. Renegotiation of gas contracts must be completed as soon as possible," he said.

Until the time 100-day program the Ministry of Industry (Kemenperin) ended, this institution can not be coordinated and resolve the gas guarantee for six new fertilizer plant that will be revitalized.

Minister of Industry M.S. Hidayat explained from six pendiran plans new plant, the government can only resolve the allocation of gas to the plant owned by PT Kaltim Fertilizer 5 Kalimantan Timur (PKT).

Volume of the gas supply only 80 MMSCFD (million metric standard cubic feet per day) and no more than 10 years that began in 2012 until 2021. For ideal operation, the fertilizer industry should get the gas supply at least 20 years.

Certainty is, obviously Hidayat, obtained after a principle agreement between the CCP and KKKS consisting of Total E & P, Pearl Oil and Inpex agreed price of natural gas based on the formula. Factory Kaltim 5 is a prestigious project that will replace the 1st Kaltim energy-intensive.

However, five new factories Pusri II B, III B and IV B a total capacity of 2.72 million tons, 1 factory of PT Petrokimia Gresik (Petrogres) 570,000 tons, and 1 plant of PT Pupuk Kujang Cikampek (CCP) capacity of 907,500 tons per year -until now not yet have the certainty of supply of gas.

Executive Agency for Upstream Oil and Gas claims to have provided the gas supply to fertilizer plants, despite optimal supply is not sufficient recognition. Revitalization plan for the fertilizer plant noticed gas resources there.

Deputy Operations Control Budi Indianto BP Migas said the government has highlighted the respect for contracts that have been there before, despite gas supply deficit continue to occur in the country.

BP Migas has sought the supply of gas to domestic, including to support the revitalization program fertilizer factory.

Director of PT Pupuk Iskandar Muda Mashudianto suggested that the gas problem for the industry should be brought to the Minister.
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