Husky Gas to be supplied to Petrokimia

Jakarta (ANTARA News) - The government has assured that natural gas from Husky-CNOOC Madura Ltd fields would be supplied to PT Petrokimia Gresik to meet the company`s new amonia and urea plant.

"I have decided in the meeting this time, referring to the earlier coordination meeting, that gas for Gresik fertilizer plant would come from Husky while for Kujang from Cepu Block," coordinating minister for economic affairs Hatta Rajasa said after meeting to discuss revitalization of fertilizer plants here on Monday.

He said with the decision all new amonia and urea plants in Indonesia would be assured of gas supply.

"So, as part of the revitalization efforts all our fertilizer plants have been assured of gas supply," he said.

He said he had also asked the ministry of energy and mineral resources as well as SKK Migas (oil and gas regulating task force) to carry out thorough analysis and formulate technical provisions relating to gas use for the new amonia and urea plants.

"We need around 85 MMCFD for Gresik and 85 MMCFD for Kujang," he said.

Hatta hoped revitalization of amonia and urea plants in several regions could support food security programs for 30 years.

East Java governor Soekarwo earlier expressed his support for PT Petrokimia Gresik to get gas supply from Husky-CNOOC Madura Ltd. fields to meet its new plant.

He hoped gas production from the fields in East Java would be prioritized for industries operating in the province to increase their competitiveness.

"The principle is the domestic market obligation scheme must be prioritized," he said.

PT Petrokimia Gresik plans to build a new amonia and urea plant (PKG 2) this year and it is scheduled to start operating in 2016.

reporting by satyagraha