JP\/13\/FERTILIZER<\/p>\n
Govt to allow Aceh fertilizer producers to export production<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
Fertilizer plants in Nanggroe Aceh Darussalam will be allowed to
\nexport part of their production so that they can obtain higher
\nprices and secure access to much-needed gas, a top official
\nsays.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie, as
\nquoted by Antara news agency, said on Wednesday that Asean Aceh
\nFertilizer (AAF) as well as Pupuk Iskandar Muda (PIM) I and PIM
\nII could export their products after meeting the demand in the
\nprovince and neighboring North Sumatra.<\/p>\n
"The demand in Aceh and Sumatra represents only between 30
\npercent and 40 percent of their capacities," he said, adding that
\nthe rest could be exported.<\/p>\n
Many rice fields in tsunami-stricken Aceh cannot be planted at
\nthe moment due to the approximately 10 centimeters of salt
\ndeposited on the land after the giant tsunami hit late last year.<\/p>\n
Separately, State Minister of State Enterprises Sugiharto told
\nreporters that the fertilizer plants have agreed to buy liquefied
\nnatural gas (LNG) at over US$3 per million British thermal unit
\n(mmbtu), almost twice the price usually charged for domestic gas
\nsupplies.<\/p>\n
The plants could afford higher prices as fertilizer overseas
\nwas sold at between $220 and $250 per metric ton, while on the
\ndomestic market it was sold at $110.<\/p>\n
"Higher gas prices are still feasible, then," he said.<\/p>\n
"There is no reason for Pertamina and BP Migas not to be able
\nto provide gas," he said, referring to state oil and gas firm PT
\nPertamina and the Oil and Gas Upstream Regulatory Agency (BP
\nMigas).<\/p>\n
If the two institutions could not fulfill the demand, the
\nfertilizer plants would get their gas supplies from Brunei, he
\nadded. It was unclear if Brunei would offer LNG at a lower price
\nor why it would do so.<\/p>\n
The price of LNG on the international spot market stands at
\nabout $7 per mmbtu.<\/p>\n
In total, AAF, PIM I and PIM II need 12 cargoes of LNG -- with
\none cargo containing about 125,000 metric tons of LNG -- a year
\nto operate at full capacity.<\/p>\n
The government decided late last year to reschedule the
\nshipment of nine cargoes for overseas buyers from ExxonMobil, the
\noperator of the aging Arun gas field in Aceh, in order to fulfill
\nthe demand from fertilizer plants in the province.<\/p>\n
ExxonMobil had earlier committed another three cargoes to the
\nplants this year.<\/p>\n
The problems of LNG supplies hit the headlines once again
\nafter Pertamina announced that it had had to find one cargo of
\nLNG to meet prior commitments to buyers in Japan, Taiwan, and
\nSouth Korea in April after rescheduling talks failed.<\/p>\n
The state firm told the media on Tuesday that it could not
\nfind a cargo for April due to the tight competition in the
\nmarket.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13fertilizer-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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