GOVT CONSIDERING BUILDING FERTILIZER FACTORY IN TANGGUH

Jakarta, Dec 11 (ANTARA) - The government is studying the possibility of building or relocating fertilizer factories to a location nearby the Tangguh gas field in Papua province, a cabinet minister said.

Energy and Mineral Resources Minister Purnomo Yusgiantoro told a meeting with the House of Representatives (DPR) here on Wednesday night that the development of fertilizer factory for the Tangguh field would follow the pattern of the Arun and Bontang gas fields in Aceh and East Kalimantan.

"We learn a lesson from the Arun and Bontang gas fields where fertilizer factories or other industries are better built nearby the gas fields," the minister said.

At present, Pupuk Iskandar Muda and AAF fertilizer companies are located near the Arun gas field while Pupuk Kaltim has also been set up nearby the Bontang gas site.

On the progress of the Tangguh LNG project, Minister Purnomo Yusgiantoro said that in April 2009 the Tangguh field was expected to make its first LNG production which would be exported to South Korea.

"We are still making preparations so that the delivery would run smoothly," the minister said.

After South Korea, the Tangguh LNG production will also be shipped to Fujian, China and finally to Sempra, the United States.