PT Pupuk Iskandar Muda to operate to capacity in 2011

Jakarta (ANTARA News), June 19, 2010 - State fertilizer maker PT Pupuk Iskandar Muda will operate to full capacity as of 2011 after operating under capacity since 2005 due to gas supply problems, its president director, Mashudianto, said.

The fertilizer company would get gas supply totalling 11 cargoes through a swap scheme between the Arun Refinery in Aceh and Bontang in East Kalimantan, he here on Friday. "As of 2011 we will be steady," he said. The company has two plants with total production capacity of 1.14 million tons a year. In 2010 it only operates to 50 percent of capacity as it is only assured of six cargoes of gas supply.

The condition however is still better than in 2005 to 2008 when it only operated to 25 percent of capacity. The company operated to 50 percent of capacity as of 2009. He said total production of the company is distributed at home namely to Aceh, West Sumatra, Lampung and North Sumatra.

In 2012, he said, the company would get 12 cargoes of supply through a swap with Bontang. In 2013, the company meanwhile is expected to get 110 million cubic feet of gas per day from Block A, Aceh, operated by PT Medco EP Indonesia.

PT Pupuk Iskandar Muda has already signed the contract for gas supply from Block A for nine years at a volume of 110 million cubic feet per day (MMSCFD) for four years (2013 to 2017) and 60 MMSCFD for five years (2017 to 2022). The company will also get a gas supply from a LNG receiving terminal in Aceh as of 2015. The terminal is modification of Arun LNG Refinery whose export contract will expire as of 2014. "It will now be able to supply PT Pupuk Iskandar Muda, state electricity company PLN and other industries for 20 years," Mashudianto said.