PT Puri 'owes' Pertamina US$40 million<\/p>\n
JAKARTA (JP): State fertilizer maker PT Pupuk Sriwijaya
\n(Pusri) is US$40 million in arrears for gas supplied by state oil
\nand gas company Pertamina, Pertamina said on Wednesday.<\/p>\n
Pertamina director Soegianto said Pertamina had given Pusri
\nuntil Oct. 5 to pay off its obligations, though he promised not
\nto take strict action against the company if it failed to meet
\nthe deadline.<\/p>\n
"If Pusri can't pay by the deadline, no problem. We shall
\ncontinue supplying gas to the company as long as we are able to
\ndo so."<\/p>\n
"But, please talk with us. Probably the payment can be paid in
\ninstallments," Soegianto was quoted by Antara as saying.<\/p>\n
Pusri has not been paying for its gas since the rupiah
\nsignificantly depreciated against the U.S. dollar last year. The
\nfertilizer company pays for the gas in dollars, but takes in
\nrevenues in rupiah.<\/p>\n
Pusri, based in Palembang, South Sumatra, uses gas to produce
\nits fertilizers as well as for fuel.<\/p>\n
Soegianto noted that Pertamina was also facing financial
\nproblems amid the monetary crisis due to several factors,
\nincluding the failure of several customers to pay for gas and
\nfuel orders.<\/p>\n
According to the state-owned electricity company PLN,
\nPertamina sells gas to Pusri for between US$1.50 and $1.85 per
\nmillion British thermal units (MMBTU).<\/p>\n
Pusri's IB fertilizer plant consumes 55 million cubic feet per
\nday (MMSCFD) of natural gas from Pertamina at the price of $1.50
\nper MMBTU, while the Pusri II, III and IV fertilizer plants take
\nin a total of 155 MMSCFD of natural gas at the price of $1.85 per
\nMMBTU.<\/p>\n
All other state fertilizer makers, including PT ASEAN Aceh
\nFertilizer, Pupuk Iskandar Muda, Pupuk Kujang and Pupuk Kaltim
\npay only $1 per MMBTU of gas from Pertamina.<\/p>\n
PLN former president Djiteng Marsudi once complained that
\nPertamina had set gas prices too high for PLN, saying it was one
\nreason behind PLN's soaring operating costs amid the monetary
\ncrisis.<\/p>\n
PLN is locked into a 10-year sales contract with Pertamina for
\nbetween $2.45 and $3 per MMBTU of gas.<\/p>\n
Soegianto said the price of gas sold to state companies was
\nset by the government.<\/p>\n
"Gas prices were set in line with international prices at the
\ntime sales contracts were signed," Soegianto said.<\/p>\n
Analysts have said PLN pays higher gas prices than fertilizer
\nplants due to a cross-subsidy scheme in which PLN subsidizes the
\nsale of gas to the fertilizer companies.<\/p>\n
PLN signed gas purchase contracts with Pertamina between 1987
\nand 1994 when the company enjoyed large profits. The monetary
\ncrisis, however, has put PLN on the verge of bankruptcy.<\/p>\n
Pertamina sells gas to state companies at flat prices, but
\nsells to foreign firms at prices fluctuating in line with the ups
\nan downs of international oil prices. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-puri-owes-pertamina-us40-million-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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