Petrokimia Gresik To Receive Gas Supply From Jimbaran

Jakarta, March 18 (Antara) - The Upstream Oil and Gas Regulatory Task Force (SKK-Migas) said PT Petrokimia Gresik will receive gas supply from the Jambaran-Tiung Biru gas field. "The agreement to supply gas from the Jambaran-Tiung Biru gas field was reached in a meeting in the Directorate General of Oil and Gas of the Energy and Mineral Resources Ministry in January 2013," SKK-Migas Secretary Gde Pradnyana said here on Monday. He said the meeting --which was attended by representatives from Petrokimia Gresik and the Ministry of Industry-- agreed that the gas to be supplied to PT Petrokima Gresik would come from Jamabaran. "The matter has been clear," he said referring to questions whether the gas supply to Petrokimia Gresik would come from Husky`s MDA-MBH field or from Jambaran. He said that gas from Jambara was much cheaper than that from Husky. This is because it is located onshore. Petrokima Gresik is one of state owned fertilizer subsidiaries under the holding firm PT Pupuk Indonesia. Earlier, Arifin Tasrif, the president director of PT Pupuk Indonesia said the gas for Petrokima Gresik would come from MDA-MBH field which was operated from Husky. The supply from Husky`s field amounts to 86 million metric standard cubic feet per day (mmscfd) with a price of 6.5 dollars per mmbtu with an annual escalation of three percent. Petrokimia Greski rejected the gas supply from Jambaran-Tiung Biru which is operated by PT Pertamina EP Cepu because it was more expensive, namely 8.88 dollars per mmbtu. Therefore, the Presidential Working Unit for Supervision and Development Control (UKP4) questioned the confusion regarding the party which would supply the gas to Petrokimia Gresik. UKP4 Chief Kuntoro Mangkusubroto has sent a letter to Energy and Mineral Resources Minister Jero Wacki, asking for explanations regarding the party which would supply the gas to Petrokimia Gresik, whether it would come from MDA-MBH or from Jambaran-Tiung Biru. Petrokimia Gresik will develop an expansion of its ammonia and urea fertilizer factories with a respective capacity of 825 thousand tons and 570 thousand tons per annum. The projects that would begin construction this year are expected to start operations in the second quarter of 2016.