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State-owned fertilizer giant PT Pupuk Sriwijaya has called on the government to come up with a “fairer” gas-distribution policy to help ensure that the fertilizer industry receives a steady supply of its key raw material.

Dadang Heru Kodri, president director of the company, also known as Pusri, told a news conference on Friday that the existing policy of allocating more gas to fuel power plants was unfair to other industries that need gas as a raw material, such as fertilizer companies.

“We are now facing a problem because some gas contracts may be terminated because of a lack of gas supply,” he said.

Dadang said PT Pertamina EP, a subsidiary of state oil and gas firm PT Pertamina, had notified Putri that because of limited gas reserves it would not be able to extend its contract for 166 million standard cubic feet per day when it expires in December 2012.

Salis Aprilian, Pertamina EP’s president director, told the Jakarta Globe that his company had not responded to a letter from Pusri asking for the contract to be extended.

“We are still considering our existing gas reserves and the volume for the extension as we also have limited reserves,” he said, adding that Pertamina EP has found it difficult to fulfill other contracts as well.

Companies such as Pusri have complained about gas shortages in recent years, prompting calls for the government to limit gas exports.

On Thursday, Energy Minister Darwin Saleh said the government was considering putting such limits in place until domestic demand is fully met.

Dadang added that Pusri’s operation in South Sumatra faces a negative gas supply.

“Only PT Medco Energy supplies gas [to the South Sumatra operation ],” Dadang said.

Pupuk Iskandar Muda, a Pusri unit based in Aceh, is also suffering from a problem obtaining gas.

PIM president director Mashudianto said in early December that the company was negotiating with several suppliers but warned that it could be forced to shut down the plant if it is unable to secure new supplies any time soon.