State fertilizer company PT Pupuk Iskandar Muda (PIM) has secured a gas supply commitment from oil and gas firm PT Medco E&P Indonesia for the next seven years.
“In 2013, Medco will begin to supply 110 million standard cubic feet per day(mmscfd) to PIM,” PIM president director Mashudianto said quoted by Kontan.com adding that the gas would be produced from Blok A in Aceh Province, which would operate in 2013.
PIM is targeting to produce 500,000 tons of fertilizer this year. It aims to produce 1.2 million tons in 2012 after resuming PIM II fertilizer factory.
PIM has been suffering from a gas shortage after ExxonMobil earlier cut and stopped gas supply to the fertilizer producer, saying that its gas output was only just enough to meet its contract for liquefied natural gas (LNG) export to Japan and Korea
Aceh once has two fertilizer companies: PIM and Asean Aceh Fertilizer companies, located in North Aceh. AAF has been closed since 2001 due to a raw material supply problem, while PIM does not have a significant growth.